Centre Extends Cotton Import Duty Exemption Till December 31 to Ease Textile Costs

The Indian government has officially extended the customs duty exemption on cotton imports by two months, moving the deadline from October 31, 2026, to December 31, 2026. According to the reported details, this regulatory adjustment is intended to improve raw material availability and lower input costs for the domestic textile and apparel sector.

Ministry Notification and Legal Basis

• Issuing Authority: The Union Ministry of Finance, through the Department of Revenue and the Central Board of Indirect Taxes and Customs, released the directive.
• Official Order: The extension was formally enacted via Notification No. 35/2026-Customs, dated October 30, 2026, which amends a prior notification from May 30, 2026.
• Legal Framework: The action was taken under Section 25(1) of the Customs Act, 1962, read with Section 124 of the Finance Act, 2021, with the government citing public interest.

Objectives and Practical Implications

Reports indicate that the measure is designed to balance industry needs with broader market conditions:

• Cost Relief: Manufacturers anticipate eased input cost pressures across the entire textile and apparel value chain.
• SME Support: Small and medium enterprises relying on consistent raw material supply may find it easier to manage procurement expenses.
• Market Balance: The policy aims to maintain adequate domestic cotton availability while considering the interests of domestic cotton farmers.

How to Verify the Announcement

To review the official documentation, interested parties can check the Gazette of India or visit the official portal of the Central Board of Indirect Taxes and Customs under the Ministry of Finance to read Notification No. 35/2026-Customs.