The government has extended the customs duty exemption on cotton imports by two months till December 31, 2026, to increase availability for the domestic textile sector.
In May, the government had exempted cotton imports from customs duties for five months, till October 31, 2026.
“The extension is expected to help reduce input costs across the textile and apparel sector, thereby providing targeted relief to manufacturers and consumers, while also keeping the interests of domestic farmers in mind,” the finance ministry said.
The measure is also expected to have a positive impact on the performance of the domestic textile industry, particularly small and medium enterprises, by ensuring better availability of cotton in the market, it added.