Centre waives 10.5% cotton import duty till 31 October to ease textile input costs

Government exempts cotton imports from 5% basic customs duty and cess for five months starting 1 June, targeting relief for apparel SMEs amid tight domestic supply. FY26 cotton imports already up 54.6% YoY at $1.86bn; garment exports at $15.81bn of $35.7bn total textile shipments.

— Filed Sat, 30 May, 2026, 19:13 IST · Source Mint · Industry · Updated

Centre exempts cotton imports from 10.5% customs duty and cess for five months from 1 June to 31 October to ease raw material costs for textile and apparel manufacturers, especially SMEs, amid tight supplies and weak export demand.

Why this matters

Follows repeated Centre interventions on cotton duty relief through October, signalling sustained policy support for textile exporters as input costs and import dependency rise sharply in FY26.

retail-brand activity steady at 757 signals over the past 90 days.