India waives 10.5% cotton import duty for 5 months to plug 3.7 mn bale deficit

Government of India suspends 10.5% cotton import duty from 1 June for five months, easing raw material costs for spinning and apparel hubs in Tiruppur, Ludhiana, Surat and Coimbatore. Move backstops $35.7 bn FY26 textile export target against a 3.7 mn bale domestic shortfall.

— Source publishedMon, 1 Jun, 2026, 10:55 IST·First seen Mon, 1 Jun, 2026, 11:02 IST·Source Mint · Industry

What happened

Government of India · India waives 10.5% cotton import duty for five months from 1 June to ease raw material costs for textile and apparel exporters, benefiting

Key facts

  • 10.5% duty
  • 5 months waiver from 1 June
  • ₹5,659 crore Cotton Productivity Mission
  • $35.7 bn FY26 textile exports
  • 29.1 mn bales FY26 production
  • 3.7 mn bales deficit
  • $1.86 bn FY26 cotton imports

Why this matters

Evaluate sourcing JVs or offtake agreements with Indian mills now, as cheaper input costs may temporarily reshape competitive pricing versus Bangladesh and Vietnam apparel hubs.

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