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The Centre has extended the cotton import duty exemption until December 31, 2026, offering relief to India's textile and apparel industry. (Img: Pinterest)
New Delhi: The Central Government has extended the customs duty exemption on cotton imports until December 31, 2026, providing additional relief to India's textile and apparel industry. The decision gives manufacturers two more months to source raw cotton without the applicable import duty, helping them manage rising input costs and maintain production levels.
The exemption was originally scheduled to end on October 31, 2026.
The Ministry of Finance announced the extension through Extraordinary Gazette Notification No. 35/2026-Customs, dated October 30, 2026.
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The Department of Revenue issued the notification under Section 25(1) of the Customs Act, 1962, read with Section 124 of the Finance Act, 2021. The amendment revises the earlier notification dated May 30, 2026, replacing the October 31 deadline with December 31, 2026.
The move ensures that textile manufacturers can continue importing cotton without customs duty for the extended period.
The extension is expected to benefit textile mills, spinning units, garment manufacturers and other businesses across the textile value chain.
Micro, Small and Medium Enterprises (MSMEs), which often operate with limited financial flexibility, are likely to gain from reduced raw material procurement costs. Lower import expenses could help businesses manage working capital requirements, sustain production and remain competitive in domestic and international markets.
The government's decision also aims to maintain a steady supply of cotton for domestic manufacturers amid fluctuations in global prices and raw material availability.
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Greater access to imported cotton is expected to ease supply-side pressures, support manufacturing operations and improve the price competitiveness of finished textile products.
While the extension offers cost relief to manufacturers, the government has also highlighted the need to protect the economic interests of domestic cotton farmers.
The additional two-month exemption period is expected to provide short-term support to the textile sector while helping manufacturers and garment exporters navigate input cost challenges towards the end of 2026.
