Cotton Imports Made Duty-Free From June 1 to October 30

The Centre has temporarily waived customs duty on cotton imports from June 1 to October 30, 2026, to support India’s textile and apparel industry.

The exemption covers both basic customs duty and the Agriculture Infrastructure and Development Cess (AIDC). The move is aimed at improving cotton availability and helping manufacturers manage raw-material cost pressures.

What Has Changed in Cotton Import Duty? 

The government has allowed cotton imports without customs duty for a limited period.

This means importers will not have to pay the applicable duties on cotton brought into India during this window. 

What Is AIDC on Cotton Imports?

AIDC stands for Agriculture Infrastructure and Development Cess.

It is a cess applied to certain imports to support the development of agriculture-related infrastructure. In this case, the government has waived AIDC along with basic customs duty on cotton imports for the specified period.

Why Was the Cotton Import Duty Waiver Announced? 

The decision is meant to support the textile industry, where cotton is a key input for yarn, fabric, garment, and apparel makers.

When local supply becomes tight or prices rise, production costs can increase. The waiver may help manufacturers access additional cotton from overseas markets.

How Can This Help the Textile Industry?

The duty relief can lower the landed cost of imported cotton.

This may help manufacturers maintain smoother production cycles, especially when domestic prices are volatile. Small and medium textile units may benefit, as they are often more sensitive to changes in raw material prices.

Could This Affect Domestic Cotton Growers? 

The waiver is temporary and has been designed to support industry requirements without ignoring the interests of domestic cotton growers.

Since the exemption is limited to five months, the government is trying to balance two needs: improving cotton supply for manufacturers and protecting domestic producers from long-term import pressure.

Final Outlook

The cotton import duty waiver gives short-term relief to textile and apparel manufacturers.

Going ahead, the key factors to watch will be import volumes, domestic cotton prices, global rates, currency movement, and whether the exemption helps stabilise supply before October 30, 2026.

Source: https://www.moneycontrol.com

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