India waives 11% cotton import duty till Oct 30, 2026 to plug 45 lakh bale supply gap
Centre suspends 11% cotton import duty from Jun 1 to Oct 30, 2026 as domestic supply of 292.15 lakh bales trails 337 lakh bale demand. Move targets 10-15% price surge squeezing textile and apparel makers losing ground to Bangladesh and Vietnam, with imports already covering 15% of cotton and 20% of yarn needs.
What happened
Ministry of Textiles · Government waives 11% cotton import duty from June 1 to October 30 to ease input costs for textile and apparel manufacturers facing
Key facts
- 11% duty
- 10-15% price surge
- 337 lakh bales demand
- 292.15 lakh bales supply
- 45 lakh bales gap
- 15% cotton imports
- 20% yarn imports
Why this matters
Window is open to lock multi-year cotton and yarn supply contracts with global origins or pursue stakes in ginning/spinning assets abroad, hedging against post-Oct 2026 duty reinstatement and India's widening fiber gap.