Govt exempts cotton imports Jun 1-Oct 31 from duty to boost textile sector
This story was originally published at 18:13 IST on 30 May 2026
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--Govt exempts customs duty on cotton imports from Jun 1 to Oct 31
MUMBAI/DELHI – The government has exempted cotton imports from payment of duty with effect from Monday, according to a notification from the Ministry of Finance Saturday. The exemption will remain in force till Oct. 31, according to the notification. With this, the government has removed the 5% basic customs duty, 5% agriculture infrastructure and development cess, and 10% social welfare surcharge on both levies, adding up to an import duty of 11%, on cotton.
"The temporary duty exemption is expected to reduce input costs across the textile and apparel sector, thereby providing a targeted relief to manufacturers and consumers while also keeping the interests of domestic farmers in mind," a government official said. "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 notification comes amid reports that the government had been in an "advanced stage of consultation" on the 11% duty on raw cotton imports to examine if the levies can be removed. A delegation comprising apparel industry representatives and exporters had recently met Vice-President C.P. Radhakrishnan and several Union ministers to seek the removal of the levies, according to a report by the Press Trust of India last week. End
Reported by Shreya Shetty and Priyasmita Dutta
Edited by Rajeev Pai
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