The Central government on Saturday announced a temporary exemption from customs duties on cotton imports for a period of five months. The decision aims to improve the availability of raw material for India's textile and apparel sector and provide relief to manufacturers facing rising input costs.

According to a notification issued by the Finance Ministry, cotton imports will be exempt from both the Basic Customs Duty and the Agriculture Infrastructure and Development Cess (AIDC) from June 1, 2026, to October 30, 2026. The move is expected to make imported cotton more affordable and help ensure a steady supply for the domestic textile industry.

The government said the exemption has been introduced to maintain adequate cotton availability for textile manufacturers across the country. Industry players have been dealing with supply-related challenges and fluctuations in cotton prices, which have increased production costs in recent months. The temporary waiver is expected to ease some of this pressure and help manufacturers manage their expenses more effectively.

By reducing the cost of imported cotton, the measure is likely to benefit different segments of the textile value chain. Textile mills, garment manufacturers, and other businesses dependent on cotton are expected to gain from improved access to raw material at lower costs. Consumers may also benefit from better availability of cotton, which could contribute to smoother production and a stable market supply.

Officials said the temporary duty waiver has been designed to address industry requirements without overlooking the interests of domestic cotton growers.

The government believes the move will strengthen the overall performance of the textile sector, which plays a major role in India's manufacturing and export economy. Small and medium enterprises (SMEs), in particular, are expected to benefit from the decision. These businesses are often more vulnerable to sudden changes in cotton prices and supply shortages and may find it easier to maintain production with improved access to raw materials.

The exemption is also expected to improve cotton availability in the domestic market and support uninterrupted production cycles. Industry stakeholders believe that a stable supply of cotton will help manufacturers meet demand more efficiently and maintain operational continuity.

With the temporary removal of import duties, the Centre aims to support the growth of the textile and apparel industry while ensuring that manufacturers have sufficient access to cotton during the coming months. The government expects the measure to boost industry confidence, improve production efficiency, and contribute to the sector's continued growth.