Centre Suspends 11% Cotton Import Duty Until Oct 30, Gujarat Textile Hub Gains Relief
The Centre's temporary suspension of the 11% cotton import duty through October 30 eases input cost pressure on Gujarat's textile value chain, where domestic cotton has surged to Rs. 68,500 per candy (US $719). The move offers short-term margin relief amid weak demand, but reverts post-deadline.
What happened
Gujarat Textile Industry · Centre's suspension of 11% cotton import duty until 30th October brings relief to Gujarat's textile industry, easing cost pressures
Key facts
- 11% import duty
- Rs. 68,500 per candy
- US $719
- 30 Oct deadline
Why this matters
The duty window opens a short M&A arbitrage to acquire stressed mid-tier spinners whose working capital eases temporarily but structural cost disadvantage returns post-deadline.