Centre extends customs duty exemption on cotton imports till December 31

The continuation should help drop production expenses throughout the garment industry by guaranteeing stronger cotton supply locally. India has prolonged the customs duty waiver on cotton shipments through December 31, 2026, shifting from the prior October 31 deadline, to boost raw material access and lower expenses for the nation’s apparel sector. The finance department released

Written by
Divya S
Published by
The Indian Textile Journal
Published
Length
168 words · 1 min
Centre extends customs duty exemption on cotton imports till December 31

The continuation should help drop production expenses throughout the garment industry by guaranteeing stronger cotton supply locally.

India has prolonged the customs duty waiver on cotton shipments through December 31, 2026, shifting from the prior October 31 deadline, to boost raw material access and lower expenses for the nation’s apparel sector.

The finance department released an order on October 30 tweaking its May 30, 2026, tax directive to prolong the relief. This update was enacted via Section 25(1) of the Customs Act alongside Section 124 of the Finance Act.

The continuation should help drop production expenses throughout the garment industry by guaranteeing stronger cotton supply locally. It also aims to assist makers and buyers while protecting the welfare of local cotton growers, officials noted.

Smaller businesses specifically stand to gain from enhanced access to this vital supply.

Cotton serves as a vital resource for India’s garment business, where its supply and rates shape overall expenses across the supply chain. Cheaper input costs might additionally offer respite to buyers based on how much savings firms transfer downward.

Where this came from

This story was reported by Divya S and first published by The Indian Textile Journal on 31 Oct 2026. HUE Legacy Ventures did not write it.

Rights reserved by the publisher. Carried with attribution and a link back, removal on request, on the same footing as the other commercial publishers on the wire.

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