Cotton duty waiver hands Indian textile exporters a five-month cost reset

Centre suspends 11% cotton import duty from June-October 2026 to plug a 50-70 lakh bale deficit. SIMA, AEPC and CITI back the move, expecting relief for MSME garment exporters battling a 2.2% YoY drop in $35.79 billion FY26 shipments and parity with Asian rivals.

— Source publishedSat, 30 May, 2026, 19:04 IST·First seen Sat, 30 May, 2026, 19:06 IST·Source BL · Consumer & Economy

What happened

Indian Textile Industry · Centre temporarily waives 11% cotton import duty from June-October 2026, easing raw material costs amid 50-70 lakh bale deficit. SIMA,

Key facts

  • 11% import duty
  • 290 lakh bales production
  • 330-340 lakh bales demand
  • 50-70 lakh bales shortfall
  • ₹54,500 to ₹71,000 per candy
  • $35.79 billion FY26 exports
  • -2.2% YoY

Why this matters

The duty-free window opens a tactical sourcing arbitrage—evaluate forward inventory builds or supply agreements with Indian mills before the October 2026 sunset.

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