Indian Govt temporarily waives off Customs Duty on cotton imports from June 1 to October 31

NEW DELHI : The Government has temporarily exempted customs duties on cotton imports from the first of next month to 31st October this year.

The Ministry of Textiles, in a notification, said that the decision has been taken keeping the interests of cotton farmers and the entire cotton value chain at the forefront. It added that the measure, implemented during the cotton off-season, will ensure adequate availability of cotton for the textile industry, support MSMEs, moderate input costs, and strengthen the competitiveness of Indian textiles.

The Ministry emphasised that the measure will safeguard the interests of the farmers and ensure market stability. Cotton production in the current cotton marketing season (October 1, 2025 to September 30, 2026) is expected to be about 290 lakh bales as against the domestic requirement of nearly 320 lakh bales. The Union government suspended the import duty from April to October in 2022 and in 2025.

Cotton price on Saturday was ₹64,000 a candy and the prices are on the rise for the last two months. Nearly 40 lakh bales of cotton have been imported so far in the current season.

“Overall, the measure is anticipated to have a positive impact on the performance of the domestic textile industry, especially the small and medium enterprises, ensuring better availability of cotton in the market,” the ministry said.

The government move comes after industry executives highlighted that the price of cotton has surged nearly 10-15% during the last month alone due to hoarding, as cotton demand picked up in line with other input materials, particularly polyester.