INDUSTRY
Textile industry gets input cost relief as govt scraps Customs Duty on cotton imports
- IBJ Bureau
- May 31, 2026
The government has exempted cotton imports from payment of duty from June 1, according to a notification from the Ministry of Finance.
The exemption will remain in force till October 31, according to the notification.
The government has removed the 5 per cent Basic Customs Duty, 5 per cent Agriculture Infrastructure and Development Cess and 10 per cent Social Welfare Surcharge on both the levies, adding up to an Import Duty of 11 per cent on cotton.
“The temporary duty exemption is expected to reduce input costs across the textile and apparel sector, thereby providing a targeted relief to manufacturers and consumers, while also keeping the interests of domestic farmers in mind,” a government official has said. “Overall, the measure is anticipated to have a positive impact on the performance of the domestic textile industry, especially the small and medium enterprises, ensuring better availability of cotton in the market,” he has added.
The notification comes amid reports that the government had been in an “advanced stage of consultation” on the 11 per cent duty on raw cotton imports to examine if the levies could be removed.
A delegation comprising apparel industry representatives and exporters had recently met Vice-President C P Radhakrishnan and several Union ministers to seek the removal of the levies.
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