The Central Government on Saturday announced temporary exemption from all custom duties on cotton imports for 5 months. The objective of this step is to improve the availability of raw materials for India’s textile and clothing industry. According to a notification issued by the Finance Ministry, cotton import will be exempted from basic custom duty as well as Agricultural Infrastructure and Development Cess (AIDC) from June 1, 2026 to October 30, 2026. The government said that this decision has been taken to ensure adequate supply of cotton for the domestic textile sector and to help the makers deal with the pressure of input costs.
To augment the availability of cotton for the Indian textile sector, the Central Government has temporarily exempted all customs duties on import of cotton from 1st June, 2026 till 30th October, 2026. pic.twitter.com/ccHYVBsNc4
— ANI (@ANI) May 30, 2026
Industry will benefit
By reducing the cost of imported cotton, this measure is expected to provide relief across the textile value chain. This will benefit textile and clothing makers and will also help consumers through better availability in the market. Officials said that this temporary exemption in custom duty has been designed in such a way that it can meet the needs of the industry without ignoring the interests of domestic cotton growers.
Domestic market will be strong
The central government hopes that this step will strengthen the performance of the textile sector, especially small and medium enterprises (SMEs). These enterprises are often more affected by fluctuations in cotton prices and supply shortages. This exemption is also expected to improve the availability of cotton in the domestic market. This will help in smooth running of the production cycle and will also boost the growth of the industry in the coming months.
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