India Extends Cotton Import Duty Exemption to December 31

en.Wedoany.com Reported - On October 30, India's Ministry of Finance Department of Revenue issued Customs Notification No. 35/2026-Customs, extending the cotton import duty exemption deadline from October 31 to December 31, a two-month extension. The new rule applies to cotton products under Chapter 5201 of the Indian Customs Tariff and continues to exempt basic customs duty and the Agriculture Infrastructure and Development Cess. India's Ministry of Textiles officially confirmed the policy adjustment on October 31.

The Indian government had previously issued Notification No. 19/2026-Customs on May 30, implementing a temporary duty exemption on imported cotton from June 1, originally scheduled to run until October 31. This amendment only adjusts the policy deadline; the existing scope of covered goods and exemption arrangements remain unchanged.

India's Ministry of Textiles stated that the extension of the exemption period aims to increase the supply of cotton raw materials to the domestic textile industry, meet procurement demand for certain special cotton varieties, and ease raw material cost pressures on spinning, textile, and garment manufacturing enterprises. Small and medium-sized textile enterprises are also eligible for the extended policy.

The Indian cotton industry estimates that domestic production for the 2026/27 season may fall below 29 million bales, while domestic demand is expected to exceed 34 million bales. In late October 2026, cotton prices in some regions of India remained above the government's minimum support price. Reuters data shows that India's cotton import value in the first half of the current fiscal year grew 63% year-on-year, reaching approximately USD 1.1 billion.

Indian textile enterprises had previously called on the government to extend the exemption period. This extension will allow importers to continue processing eligible cotton imports under the current exemption rules until December 31, 2026.