Government Extends Cotton Import Duty Exemption Till December 31, 2026

The government has extended the customs duty exemption on cotton imports until December 31, 2026. The earlier deadline was October 31. The decision gives textile and apparel manufacturers another two months to import cotton without the applicable customs duty. 

The Ministry of Finance announced the extension through a Gazette notification issued on October 30. The move is aimed at improving cotton availability and easing the pressure of raw material costs on the domestic industry. 

Cotton Import Exemption Gets Two-Month Extension 

The latest notification replaces the October 31 deadline with December 31, 2026. It amends the earlier notification issued on May 30 this year. 

The extension keeps the duty-free import window open for textile mills and garment manufacturers through the end of the year. 

MSMEs Among the Expected Beneficiaries 

The textile sector has been facing pressure from raw material costs. The extended exemption is expected to help manufacturers manage these expenses by improving access to imported cotton. 

Small and medium enterprises are among the businesses expected to benefit. Lower input costs could also provide some relief to consumers across the textile and apparel market. 

Finance Ministry Highlights Relief for Industry and Consumers 

The Finance Ministry said the extension is expected to reduce input costs across the textile and apparel sector. It also noted that the measure is intended to support manufacturers and consumers while keeping the interests of domestic cotton farmers in mind. 

Officials expect better availability of raw cotton in the open market to support production capacity and price competitiveness across the textile and garment industry. 

Read More: Government Notifies National Social Security Board for Gig, Platform and Unorganised Workers! 

Conclusion 

The extension keeps cotton imports under the duty exemption until December 31, 2026. For textile manufacturers and MSMEs, the additional two months are expected to provide some relief from raw material costs and support cotton availability. 

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