Govt likely to extend duty-free cotton imports through Dec to curb prices
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Extending duty‑free cotton imports could keep cotton prices lower, affecting the cost of textiles and related goods for consumers and businesses.
India, which ranks as the second-largest cotton producer globally behind China, is expected to prolong its policy of allowing duty-free cotton imports. The government initially suspended the 11 percent customs tariff for a five-month period, spanning from June 1 to October 31. This temporary measure was implemented to increase domestic supply levels during the lean season. By extending this exemption through December, authorities aim to stabilize market conditions and prevent upward pressure on cotton prices. The move reflects a continued effort to manage the balance between local production and imported stockpiles, ensuring that sufficient material remains available for the textile industry and other sectors dependent on raw cotton.
India is the world’s second‑largest cotton producer and often uses temporary duty waivers to increase imports during periods of low domestic supply, known as the lean season.
- •Official announcement of the extension period and any new end date
- •Market response and price movements in cotton and textile sectors
- •Potential follow‑up policy decisions if prices remain volatile