Key Highlights
- Customs duty on cotton imports waived from June 1 to October 30, 2026.
- Decision aimed at improving cotton availability in the domestic market.
- Expected to reduce input costs for textile and apparel manufacturers.
- Major relief for MSMEs and export-oriented textile businesses.
- AEPC welcomes the government’s move.
- Industry urges spinning mills to reduce yarn prices accordingly.
- Expected to improve global competitiveness of Indian textile exports.
In a major relief for India’s textile and apparel sector, the Central Government has announced a temporary exemption from all customs duties on cotton imports from June 1, 2026, to October 30, 2026. The move aims to improve cotton availability in the domestic market, reduce raw material costs, and support textile manufacturers facing rising cotton and yarn prices.
The decision is expected to benefit the entire textile value chain, including spinning mills, garment manufacturers, exporters, and consumers. Industry experts believe that lower import costs will help stabilize cotton prices and improve the competitiveness of Indian textile products in global markets.
The Apparel Export Promotion Council (AEPC) has welcomed the government’s decision, calling it a timely intervention for the sector. AEPC Chairman A. Sakthivel said the duty exemption would help ease pressure on manufacturers, particularly small and medium enterprises (SMEs), which have been struggling with elevated cotton and yarn prices over the past several months.
According to AEPC, the removal of customs duties is likely to improve cotton supply, lower production costs, and strengthen India’s export competitiveness. The industry body has also urged spinning mills to pass on the benefits of cheaper imported cotton through lower yarn prices, ensuring that the entire textile ecosystem gains from the policy. This could help garment exporters secure international orders more competitively during the upcoming export season.
Why It Matters
- Helps control rising cotton and yarn prices.
- Improves profit margins for textile manufacturers.
- Supports apparel exports and foreign exchange earnings.
- Benefits small and medium textile enterprises.
- Strengthens India’s position in the global textile supply chain.
Key Figures
- Duty-Free Period: June 1, 2026 – October 30, 2026
- Beneficiaries: Textile manufacturers, garment exporters, spinning mills, MSMEs
- Objective: Increase cotton supply and lower production costs
