Cotton Duty Suspension to Have Little Impact on Indian Producers
22-Aug-2025 03:48 PM
Ahmedabad. Keeping in mind the demand of the textile industry and the recommendation of the Ministry of Textiles, the Central Government has decided to postpone the collection of 11 percent customs duty on the import of cotton, which will be effective from August 19 to September 30.
However, some analysts believe that keeping in mind the pressure of American tariffs, the government should look at the time period of duty suspension.
The current marketing season of 2024-25 for cotton is in its final stage. There is negligible arrival of farmers' goods in the wholesale markets.
Exemption from import duty has been given till September 30, while the new marketing season of 2025-26 will start from October and then the arrival of new cotton goods will start. This will not cause any loss to Indian farmers.
Duty-free import of cotton from abroad will provide relief to Indian textile mills and will help in keeping Indian textile products at a competitive price level in the global export market.
America has announced to impose 50 percent import duty on Indian products from 27th August, which is likely to affect the export of textile products from India.
America is a leading buyer of Indian textile products. Since less tax has been imposed on the products of other supplier countries - China, Pakistan, Bangladesh and Vietnam etc., the challenge and difficulty for Indian exporters will increase. To deal with this, it was considered necessary to reduce the cost of Indian textile products.
The Indian Prime Minister has already said that the government will never compromise with the interests of its farmers. The interest of farmers is paramount for the government.
Cotton is imported to India mainly from Brazil where the arrival of its new goods has started. Indian cotton importers have got exemption from customs duty for 40 days and they will definitely make every possible effort to take advantage of this.
During October 1, 2024 to July 31, 2025, about 33 lakh bales of cotton were imported in the country, while an additional import of 10-15 lakh bales is estimated in August-September.