Duty-Free Cotton Imports May Continue Through December as Crop Outlook Weakens

India is considering extending duty-free cotton imports through December 2026 as weaker crop prospects raise concerns over textile-sector supplies. The existing exemption expires on 31 October. An extension could ease mills’ procurement costs, although traders have warned that additional imports during the domestic harvest could put pressure on farmers’ prices.

Duty-free cotton imports could remain available for another two months as the Centre considers extending the current exemption through December, amid expectations of lower production in the 2026–27 season.

Government and industry sources indicated on 26 October that an order was expected following inter-ministerial consultations. The proposed extension had not been confirmed through a notification in the material available for this report.

The existing arrangement removes the 11% customs duty on cotton imports. Continuing it would give textile manufacturers more time to procure overseas supplies while assessing the size and quality of the domestic harvest.

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