The government is exempting cotton imports from customs duty for a limited period to improve availability for India’s textile sector. According to reports, the exemption covers cotton imports for around five months, running until October 30 (with one outlet citing October 31). Alongside customs duty, the measure also applies to AIDC, reducing the total cost of importing cotton.
The stated objective is to strengthen supply in the domestic market and help textile manufacturers manage raw material costs. By lowering duties on imported cotton, the government aims to ensure that adequate quantities of cotton are available to meet demand from the textile industry during the exemption period.
Both outlets describe the policy as a temporary relief measure rather than a permanent change. The exemption is framed as supportive of the domestic textile supply chain, with the focus on increasing access to cotton and easing price pressures for manufacturers dependent on raw cotton inputs.
