Centre Waives 11% Cotton Import Duty Through Oct 31 to Cushion Textile Input Costs

India scraps the 11% customs duty on cotton imports from June 1 to October 31, 2026, easing raw material pressure for textile manufacturers, exporters, and apparel SMEs. Farmer interests are shielded via a higher MSP of ₹8,267/quintal (medium-staple) and ₹8,667/quintal (long-staple), with a ₹557/quintal hike. Sector employs 45 million.

— Source publishedSat, 30 May, 2026, 17:09 IST·First seen Sat, 30 May, 2026, 17:16 IST·Source The Hindu BusinessLine

What happened

Government of India · Centre waives 11% customs duty on cotton imports from June 1 to October 31, 2026, to ease input costs for India's textile and apparel

Key facts

  • 11% duty
  • June 1 2026 to Oct 31 2026
  • MSP ₹8,267/quintal medium-staple
  • ₹8,667/quintal long-staple
  • ₹557/quintal MSP hike
  • 45 million employed

Why this matters

The duty window creates a strategic opening to secure cotton-heavy supply agreements or evaluate bolt-on acquisitions of margin-pressured apparel SMEs before the October 31 cliff.

Also reported by