New Delhi, August 19 (HS): In a significant relief to the textile sector, the Central Government has allowed duty-free import of raw cotton till September 30, 2025. The move is aimed at ensuring adequate domestic availability of this crucial raw material for the textile industry.

According to a notification issued by the Ministry of Finance on August 18, the exemption from import duty on cotton is effective from August 19 and will remain valid until September 30. Until now, cotton imports attracted 11% basic customs duty along with the Agriculture Infrastructure and Development Cess (AIDC).

Welcoming the decision, BJP MP and Confederation of All India Traders (CAIT) National Secretary General Praveen Khandelwal said, “The temporary suspension of import duty on cotton is a commendable step that will boost the textile industry. Cheaper raw cotton will reduce production costs, enhance exports, and increase India’s market share globally.”

The relief comes at a critical time when Indian exporters, including those in the textile sector, are bracing for a steep 50% tariff in the United States, effective August 27. The US import duty includes the existing 25% levy, along with an additional 25% imposed as a punitive measure against India’s continued purchase of Russian oil.

Industry experts believe the government’s move will help cushion domestic manufacturers against rising costs while supporting India’s competitiveness in global textile exports.

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Hindusthan Samachar / Jun Sarkar