Centre extends duty-free cotton imports till Dec 31

Textiles industry seeks incentives; price of domestic cotton drops by almost ₹1,100 per candy

- MONIKA YADAV & SHINE JACOB

The government on Thursday extended its import duty exemption on cotton by another three months till December 31, 2025, in a bid to help the domestic textile industry tide over the 50 per cent US tariffs.

"In order to support exporters further, the Central government has decided to extend the import duty exemption on cotton (HS 5201) from September 30, 2025 till December 31, 2025," an official statement said.

The exemption, first announced by the Finance Ministry for the period August 19 to September 30, 2025, was aimed at improving the availability of raw cotton and easing pressure on exporters.

The relief covers the 5 per cent Basic Customs Duty (BCD), the 5 per cent Agriculture Infrastructure and Development Cess (AIDC), as well as a 10 per cent Social Welfare Surcharge on both. These levies translate into a combined duty burden of around 11 per cent on cotton imports.