Likely Extension of Deadline for Duty-Free Cotton Imports

10-Sep-2026 01:27 PM

New Delhi: The Central Government had previously announced that cotton imports would be duty-free from June to October; however, it appears that this deadline could be extended until at least December 2026. This move is expected to provide relief to the country's textile industry.

An 11% import duty on cotton had previously been in place but was subsequently suspended. While no final decision has been made regarding the extension of the duty-free import period, prevailing circumstances suggest that the government may well have to take such a step.

The area under cotton cultivation is trailing last year's figures by approximately 70,000 hectares, and there are concerns regarding potential crop damage due to a rainfall deficit in certain states.

Global cotton prices have risen, and access to affordable cotton is essential for the Indian textile industry to maintain competitive pricing for its products in the international market. Given the domestic shortage of cotton, the need for imports will persist, making the continuation of the customs duty exemption necessary.