Cotton Import Duty Exemption Extended Through December 2026

The Government of India has extended the customs-duty exemption on cotton imports until 31 December 2026. The earlier exemption was due to expire on 31 October. The Ministry of Textiles said the Department of Revenue implemented the extension through Customs Notification No. 35/2026 dated 30 October.

The measure is intended to improve cotton availability for domestic textile and apparel manufacturers, including businesses that require specialised varieties. By extending the exemption for another two months, the government expects mills and manufacturers to have greater flexibility in sourcing inputs and managing costs during the remainder of the year.

The ministry said the decision should support value addition across the cotton, textile and apparel chain and ease pressure on micro, small and medium enterprises. The effect on domestic cotton prices, import volumes and producers will depend on market conditions and the quantity and types of cotton imported during the extended exemption period.