Govt extends import duty exemption on cotton till December 31; Vardhman Textiles, Gokaldas Exports' shares fall
The Central Government on Thursday extended the exemption of import duty on cotton until December 31, 2025, in a move which it says is aimed at supporting the domestic textile sector and exporters.
The duty waiver, which was first introduced on August 19, 2025, was initially scheduled to end on September 30, 2025. With the latest decision, the exemption on raw cotton imports (HS 5201) will remain in place for an additional three months.
According to the government, the step has been taken to ensure adequate availability of cotton for the textile industry, which has faced high input costs in recent months. A formal notification on the extension will be issued shortly.
Raw cotton imports typically attract an 11% duty, including agriculture infrastructure and development cess. The suspension is aimed at easing supply constraints and providing Indian textile mills access to raw material at globally competitive rates.
The duty waiver, which was first introduced on August 19, 2025, was initially scheduled to end on September 30, 2025. With the latest decision, the exemption on raw cotton imports (HS 5201) will remain in place for an additional three months.
According to the government, the step has been taken to ensure adequate availability of cotton for the textile industry, which has faced high input costs in recent months. A formal notification on the extension will be issued shortly.
Raw cotton imports typically attract an 11% duty, including agriculture infrastructure and development cess. The suspension is aimed at easing supply constraints and providing Indian textile mills access to raw material at globally competitive rates.
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