**Policy Summary: Temporary Customs Duty Exemption on Cotton Imports**
The Ministry of Finance has announced that the Central Government will temporarily exempt all customs duties on the import of cotton. This measure is scheduled to be in effect from June 1, 2026, through October 31, 2026.
**Objectives and Economic Impact**
The primary goal of this exemption is to augment the availability of cotton for the Indian textile sector. By eliminating import duties, the government intends to:
* **Reduce Input Costs:** Lower expenses across the textile and apparel sectors to provide relief to manufacturers and consumers.
* **Support Industry Growth:** Enhance the performance of the domestic textile industry, with a specific focus on supporting small and medium enterprises (SMEs).
* **Market Stability:** Ensure better availability of cotton in the market while balancing the interests of domestic farmers.
**Administrative Details**
* **Issuing Authority:** Ministry of Finance
* **Post Date:** May 30, 2026, at 6:46 PM
* **Source:** PIB Delhi
* **Release ID:** 2267049
* **Visitor Counter:** 778
* **Language Availability:** The release is available in Tamil, Urdu, Hindi, and Gujarati.
Key Entities Referenced
Ministry of Finance: The primary government department responsible for the temporary exemption of customs duties on cotton imports.
Indian textile sector: The primary industry scope for which the duty exemption is intended to reduce input costs and augment raw material availability.
Small and medium enterprises: A targeted segment of the domestic industry expected to benefit from improved market availability of cotton.
Ministry of Finance
Central Government temporarily exempts all
customs duties on import of cotton from 1st
June, 2026 till 31st October, 2026
Posted On: 30 MAY 2026 6:46PM by PIB Delhi
To augment availability of cotton for the Indian textile sector, the Central Government has temporarily
exempted all customs duties on import of cotton from 1st June, 2026 till 31st October, 2026.
The temporary duty exemption is expected to reduce input costs across the textile and apparel sector,
thereby providing a targeted relief to manufacturers and consumers, while also keeping the interests of
domestic farmers in mind.
Overall, the measure is anticipated to have a positive impact on the performance of the domestic textile
industry, especially the small and medium enterprises, by ensuring better availability of cotton in the
market.
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(Release ID: 2267049) Visitor Counter : 778
Read this release in: Tamil , Urdu , ही , Gujarati