The government has extended the exemption on import duty for cotton until December 31, 2025, to ensure sufficient availability for the textile industry and provide support to exporters. Earlier, the duty exemption was in effect from August 19 to September 30, 2025. The Finance Ministry said a fresh notification will be issued to formalize the extension.
Notified by the Central Board of Indirect Taxes and Customs (CBIC), the exemption waives the entire 11 per cent duty on cotton imports, including the 5 per cent Basic Customs Duty (BCD), 5 per cent Agriculture Infrastructure and Development Cess (AIDC), and 10 per cent Social Welfare Surcharge.
“To augment availability of cotton for the Indian textile sector, the Central Government had temporarily exempted the import duty on cotton from August 19 to September 30, 2025. In order to support exporters further, the government has decided to extend the import duty exemption on cotton (HS 5201) from September 30, 2025, to December 31, 2025,” the Finance Ministry said in a statement.
The extension is expected to ease input costs across the textile value chain, including yarn, fabric, garments, and made-ups, while providing relief to manufacturers and consumers amid fluctuating raw material supplies.
