New Delhi, May 30, 2026: The Government of India has temporarily exempted customs duty on cotton imports from June 1 to October 31, 2026, aiming to ensure adequate raw material availability for the textile sector while maintaining market stability.
According to the Ministry of Textiles, the decision has been taken during the cotton off-season to balance the interests of cotton farmers and the entire cotton value chain.
The ministry said the temporary duty waiver will help ensure sufficient cotton supply for the textile industry, particularly benefiting MSMEs, while moderating input costs and enhancing the global competitiveness of Indian textile exports.
The government emphasized that the measure has been designed to safeguard farmers' interests while supporting industry demand and ensuring stable market conditions.
Key Highlights
Customs duty on cotton imports waived from June 1 to October 31, 2026
Aims to ensure adequate cotton availability during the off-season
Expected to support textile manufacturers and MSMEs
Helps reduce input costs for the industry
Intended to protect farmers' interests and maintain market stability
India's Cotton Industry at a glance
India’s textile sector continued to demonstrate resilience in global markets during FY 2025–26. Total textile exports, including handicrafts, increased from ₹3,09,859.3 crore in FY 2024–25 to ₹3,16,334.9 crore in FY 2025–26, registering a growth of 2.1%.
Among the major segments, Ready-Made Garments (RMG) of all textiles remained the largest contributor to textile exports, rising from ₹1,35,427.6 crore to ₹1,39,349.6 crore, an increase of 2.9%.
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Cotton yarn, fabrics, made-ups, and handloom products recorded exports of ₹1,02,399.7 crore in FY 2025–26 as against ₹1,02,002.8 crore in FY 2024–25, reflecting stable growth of 0.4%.
Man-made yarn, fabrics, and made-ups posted a stronger growth of 3.6%, with exports increasing from ₹41,196.0 crore to ₹42,687.8 crore.
Among value-added segments, handicrafts excluding handmade carpets recorded the highest growth among major categories, rising by 6.1% from ₹14,945.5 crore to ₹15,855.1 crore.
Export growth was registered in more than 120 destinations during April 2025 to February 2026 over the corresponding period of the previous year, indicating broad-based geographical expansion in India’s textile export basket.
A notable growth has been observed in key markets such as UAE (22.3%), UK (7.8%), Germany (9.9%), Spain (15.5%), Japan (20.6%), Egypt (38.3%), Nigeria (21.4%), Senegal (54.4%), and Sudan (205.6%) etc
The Government has continued to support the sector through key export facilitation and remission measures, including the extension of the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme and the RoDTEP Scheme beyond 31.03.2026.
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