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CITI Welcomes Cotton Import Duty Exemption

• By  Textile Excellence
• May 31, 2026

The Confederation of Indian Textile Industry (CITI) has welcomed the temporary removal of the 11% import duty on cotton from June 1 to October 31, 2026, for the momentum it can provide to the MSME-dominated Indian textile and apparel sector.

Along with other industry bodies, CITI had been advocating relief on the cotton import duty. The import duty on cotton was reinstated on January 1, 2026, after a brief hiatus from August to December 2025.

The government has exempted all customs duties on cotton imports for five months till October 31, 2026. In a notification, the Finance Ministry said the import duty exemption will be effective from June 1, 2026. 

Cotton import duty cuts: The farms versus firms debate

The temporary duty exemption is expected to reduce input costs across the textile and apparel sector, thereby providing a targeted relief to manufacturers and consumers, while also keeping the interests of domestic farmers in mind.

Overall, the measure is anticipated to have a positive impact on the performance of the domestic textile industry, especially the small and medium enterprises, ensuring better availability of cotton in the market, the ministry said.

“Amid the ongoing global volatility and uncertainty, the 11% import duty on cotton was acting as a major hindrance to the Indian textile and apparel sector in raising its global competitiveness since our major Asian competitors already have duty-free access to cotton,” CITI Chairman Ashwin Chandran said. 

The CITI Chairman said the demand-supply gap arising from steadily decreasing cotton production in India necessitated the need for imports to bridge this gap. 

“For us, it is always industry plus farmers. A thriving textile and apparel industry is the farmer’s strongest customer in keeping with the ‘5F’ vision. Supporting the textile and apparel industry with a more robust policy framework for a critical raw material can ensure long-term gains for both the industry and farmers, in line with the ‘development for all’ principle,” he added. 

“Amid the ongoing global volatility and uncertainty, the 11% import duty on cotton was acting as a major hindrance to the Indian textile and apparel sector in raising its global competitiveness since our major Asian competitors already have duty-free access to cotton,” CITI Chairman Ashwin Chandran said. The CITI Chairman said the demand-supply gap arising from steadily decreasing cotton production in India necessitated the need for imports to bridge this gap. “For us, it is always industry plus farmers. A thriving textile and apparel industry is the farmer’s strongest customer in keeping with the ‘5F’ vision. Supporting the textile and apparel industry with a more robust policy framework for a critical raw material can ensure long-term gains for both the industry and farmers, in line with the ‘development for all’ principle,” he added.