Textile Industry welcomes temporary duty exemption on cotton imports
The textile industry has expressed gratitude for the temporary exemption of customs duties on cotton imports, effective from June 1 to October 31, 2026. This exemption aims to alleviate supply concerns and input cost pressures faced by manufacturers. Industry representatives believe that stable and affordable cotton supplies are crucial for enhancing competitiveness and capitalizing on emerging export opportunities.
- ▪The exemption includes a total of 11% in customs duties and cess on raw cotton imports.
- ▪India's textile industry is currently facing a cotton shortage of 40–50 lakh bales.
- ▪The country contributes only 19% of global cotton production despite having 38% of the world's cotton cultivation area.
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The textile industry has thanked Prime Minister Narendra Modi, and Union Ministers Nirmala Sitharaman, Shivraj Singh Chouhan, Piyush Goyal, Giriraj Singh for exempting cotton from 11% customs duty and agriculture cess on raw cotton imports effective from June 1 to October 31 ,2026.The Ministry of Finance issued a notification on May 30, 2026 exempting the 5% Basic Customs Duty, 5% Agriculture Infrastructure and Development Cess (AIDC), and 10% Social Welfare cess on both, totalling 11% to help manufacturers cope with severe supply concerns and input cost pressures. India’s textile industry is experiencing growing export opportunities but continues to face challenges due to cotton shortages and higher domestic cotton prices.
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