Centre waives 10.5% cotton import duty till 31 October to ease textile input costs
Government exempts cotton imports from 5% basic customs duty and cess for five months starting 1 June, targeting relief for apparel SMEs amid tight domestic supply. FY26 cotton imports already up 54.6% YoY at $1.86bn; garment exports at $15.81bn of $35.7bn total textile shipments.
What happened
Government of India · Centre exempts cotton imports from 10.5% customs duty and cess for five months from 1 June to 31 October to ease raw material costs for
Key facts
- 10.5% effective duty
- 5% basic customs duty
- $1.86 billion FY26 cotton imports
- 54.6% YoY rise
- $15.81 billion FY26 garment exports
- $35.7 billion total textile exports
Why this matters
The five-month duty holiday creates a window to renegotiate supplier contracts and evaluate vertically integrated cotton-to-garment targets stressed by domestic supply tightness.