The Centre’s decision to waive all customs duties on cotton imports for five months till October 30 is expected to improve cotton availability, reduce input costs and enhance the competitiveness of the Indian textile sector, the Textile Ministry said on Saturday.Industry bodies welcomed the move, terming it a timely relief to the textile and apparel value chain.The Ministry of Finance said in a notification that the exemption from import duties will come into effect from June 1, 2026.“This measure, implemented during the cotton season, will ensure adequate availability of cotton for the textile industry, support small and medium enterprises, moderate input costs, and enhance the competitiveness of Indian textiles while protecting the interests of farmers and ensuring market stability,” the Textile Ministry said.The Apparel Export Promotion Council (AEPC) said the move will provide major relief to the sector.“This measure is expected to increase the availability of cotton to the Indian textile and apparel sector and provide much-needed relief to the entire value chain,” AEPC said.AEPC Chairman, A. Sakthivel, said the decision will particularly benefit small and medium enterprises (SMEs) facing pressure from rising prices of cotton and yarn.
He said that eliminating customs duties on cotton imports is the need of the hour and will help reduce domestic cotton prices.In this regard, Sakthivel urged spinning mills to pass on the benefits of lower cotton costs by rationalizing yarn prices.“This will help stabilize the entire textile value chain and will enable apparel exporters to secure and fulfill export orders more competitively in the coming months,” he said.Ashwin Chandran, president, Confederation of Indian Textile Industry (CITI), said the 11 per cent import duty on cotton has become an obstacle to India’s global competitiveness at a time when its major Asian competitors already have duty-free access to cotton.“Amid ongoing global volatility and uncertainty, the 11 per cent import duty on cotton has been a major constraint on the Indian textile and apparel sector in raising its global competitiveness as our major Asian competitors already enjoy duty-free access to cotton,” Chandran said.He added that the duties raise costs across the value chain and hurt efforts to expand India’s textile and apparel exports.Indian textile exports depend largely on cotton, and the country targets $100 billion in textile and apparel exports by 2030.“With this temporary relaxation in cotton import duties, India’s textile and apparel exporters can better leverage opportunities arising from free trade agreements,” Chandran said.