New Delhi: The Central Government has decided to extend the import duty exemption on raw cotton (HS 5201) until 31st December 2025, a move aimed at ensuring sufficient supply for the domestic textile industry and providing relief to exporters.
Earlier this month, the government had announced a temporary waiver of import duties on cotton for the period between 19th August and 30th September 2025. With the extension, stakeholders in the textile value chain will now be able to benefit from duty-free imports for an additional three months.
Officials from the Ministry of Textiles stated that the decision was taken in view of rising demand from the garment and fabric manufacturing sectors, which continue to face challenges due to fluctuations in cotton availability and prices. The extension is expected to reduce input costs, support export competitiveness, and stabilise supply for spinning mills across the country.
Industry experts have welcomed the step, noting that the duty relaxation will help Indian exporters remain competitive in the global market while also safeguarding domestic manufacturers against raw material shortages.
The exemption will remain in force until December 31, 2025, after which the government will review the situation before deciding on the next course of action.
