India Extends Duty-Free Cotton Imports Until December
India has extended its duty-free cotton import window by two months until December 31, 2026, aiming to ease domestic cotton prices and reduce costs for textile manufacturers. The government had earlier removed the 11% import duty from June 1 to October 31 to improve supplies during the lean season. The extension is expected to support textile mills and encourage imports from countries including the US, Brazil and Australia.
India, the world’s second-largest cotton producer after China, has been facing firm domestic cotton prices despite the arrival of new-season supplies in October. Concerns over lower production following uneven monsoon rainfall have contributed to the price pressure, prompting textile mills to request an extension of the duty-free import period.
The extended exemption is expected to improve cotton availability, ease raw material costs for textile manufacturers and support the domestic textile industry. It could also create additional opportunities for international cotton suppliers to increase shipments to India.
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