Govt Prolongs Cotton Import Customs Exemption to December 2026

New Delhi, October 31: The government has prolonged the customs duty exemption on cotton imports until December 31, 2026, citing the requirements of the country's domestic industries. The development was disclosed by the Textiles Ministry on Saturday.

An official statement from the ministry noted that, considering the raw material requirements of the domestic textile industry, the Government of India has extended the existing customs duty exemption on cotton imports to December 31, 2026.

The revised deadline was set through Notification No. 35/2026-Customs, released by the Revenue Department of the Finance Ministry on Friday. The change adds two months to the exemption that was valid until October 31, 2026.

The objectives behind the extension include boosting cotton supply for the domestic textile sector, catering to the particular cotton needs of the industry, and fostering value addition across the textile and apparel value chain.

The move is expected to provide garment and textile producers with greater flexibility to fulfill their raw material needs, while also easing cost pressures. Micro, small and medium enterprises (MSMEs) are also likely to benefit, and Indian textile products may gain competitive strength in both home and overseas markets.

The ministry further stated that the extension will help maintain an uninterrupted supply of raw materials, improve operational flexibility in the textile industry, and encourage value addition in the cotton-based textile and apparel sector.

The Textiles Ministry said it is committed to fostering a competitive, resilient and globally integrated textile sector, along with advancing value addition, employment generation, and long-term growth across the textile value chain.