Cotton Import Duty Waiver Expected To Support Apparel Export Competitiveness 

Industry bodies say temporary exemption could improve cotton availability, moderate input costs, and support export growth.  

The Government of India has suspended the 11% customs duty on cotton imports until October 30, 2026, a move welcomed by textile and apparel industry bodies as they seek to strengthen export competitiveness and improve raw material availability.  

The exemption, effective from June 1 2026, comes during the cotton off-season and is expected to support textile manufacturers, particularly MSMEs, by easing input cost pressures and improving access to cotton supplies.  

Key Numbers  

• 11% cotton import duty suspended  

• 1 June to 30 October 2026 duty-free import window  

• Upto 600,000 bales of cotton could be imported during the exemption period, according to industry estimates 

• Textile and apparel exports declined 2.2%year-on-year to USD 35.79 billion in FY26 

Cotton imported under the exemption window could be sourced from Australia, Brazil, the United States, and Africa.  

Industry Welcomes Move  

The Apparel Export Promotion Council (AEPC) said the measure is expected to improve cotton availability across the textile value chain.  

“The temporary duty exemption is expected to reduce input across the textile and apparel sector, improve cotton availability, and enhance the competitiveness of Indian apparel and textile exports,” said A. Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC).  

“The removal of customs duty on cotton imports is the need of the hour and will help moderate domestic cotton prices,” Sakthivel added. He also urged spinning mills to pass on the benefits of lower cotton costs through rationalised yarn pricing, noting that this would help garment exporters execute orders easily.  

The Confederate of Indian Textile Industry (CITI) also welcomed the decision. “Cotton imports are largely quality and specification-driven, catering to specialised requirements and back-to-back export orders. They do not wish to displace domestic cotton,” noted Ashwin Chandran, Chairman of the Confederate of Indian Textile Industry (CITI).   

Industry bodies noted that improved cotton availability and moderated input costs could support India’s textile and apparel sector as exporters pursue new opportunities in international markets.