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India Set To Extend Duty-Free Cotton Imports Through December

• By  Textile Excellence
• October 31, 2026

India is expected to extend the duty-free cotton import window by another two months, giving textile mills much-needed relief from high prices and tight domestic supplies.

The government had waived the 11% import duty from June 1 to October 31. Three government and industry sources indicate that the exemption is likely to continue until December 31, with an official order expected soon.

The extension comes as domestic cotton prices remain firm despite the arrival of the new season's crop. Patchy monsoon rains and pest attacks have weakened production prospects, while outdated genetically modified seed technology continues to constrain yields.

India's 2026-27 cotton output is estimated at below 29 million bales, against demand exceeding 34 million bales. Stocks are also tight, with the stock-to-use ratio at around 31% – its lowest in five years. Domestic prices have crossed ₹9,000 per 100 kg, above the new-season minimum support price of ₹8,717.

An extended exemption could encourage imports from the US, Brazil and Australia, increase supplies and ease pressure on domestic prices. Cotton imports already rose 63% year-on-year to $1.1 billion during April–September.

However, higher international cotton prices, freight costs and a weaker rupee could limit import volumes even if the duty waiver continues.

Confederation of Indian Textile Industry Secretary-General Chandrima Chatterjee has called for a longer-term removal of the import duty, arguing that the tax adds to manufacturers' costs and weakens their competitiveness against exporters in Vietnam and Bangladesh.

For mills facing a domestic supply shortfall, another two months of duty-free imports could provide some breathing space.

Confederation of Indian Textile Industry Secretary-General Chandrima Chatterjee has called for a longer-term removal of the import duty, arguing that the tax adds to manufacturers' costs and weakens their competitiveness against exporters in Vietnam and Bangladesh. For mills facing a domestic supply shortfall, another two months of duty-free imports could provide some breathing space.