Cotton Duty Waiver Extended to End‑2026 to Aid Textile Sector

Finance Ministry has extended the exemption from import duty on cotton until 31 December 2026, giving the textile sector a reprieve from extra costs. The move was announced in a notification dated 30 October 2026 and builds on a waiver first granted in May 2026. The exemption, which was set to end on 31 October, now runs through the end of the year. Officials said the decision aims to support the textile industry, the country’s biggest cotton consumer, as domestic supplies remain thin. A weak Southwest monsoon has hurt the cotton crop, keeping daily arrivals at low levels even though the new cotton marketing season began on 1 October. Textile manufacturers anticipate higher cotton use this year and have repeatedly pressed the government to drop the import duty entirely. By extending the waiver, the ministry hopes to stabilise raw‑material costs and keep production lines running. The policy forms part of broader steps to shield manufacturing from import‑cost volatility. ## Context Cotton is the main fibre for Indian garment makers, so any duty on imports directly affects cloth prices. When the monsoon fails, growers produce less, and factories turn to imports to meet demand, making duty relief important for keeping the sector competitive.