Duty Free Cotton Gets Another Two Months Till 31 Dec

Keeping in view the raw material requirements of domestic textile industry, Government of India has extended the existing customs duty exemption on cotton imports until 31^st December 2026.

The extension has been notified by the Department of Revenue, Ministry of Finance, vide Notification No. 35/2026-Customs dated 30^th October 2026. Through this amendment, the existing exemption, which was available until 31^st October 2026, has been extended by two months, up to 31st December 2026.

The Government of India remains conscious of the need to balance the requirements of the textile industry with the interests of domestic cotton farmers, while promoting the sustainable and long-term growth of the entire cotton and textile value chain.

The measure is expected to provide greater flexibility to textile and apparel manufacturers in meeting their raw material requirements, help ease input cost pressures, support Micro, Small and Medium Enterprises (MSMEs), and strengthen the competitiveness of Indian textiles in domestic and international markets.

The Ministry of Textiles has welcomed the decision of the Ministry of Finance and remains committed to promoting a competitive, resilient and globally integrated textile sector, advancing value addition and employment generation, and fostering the long-term growth of the entire textile value chain. (On the opposite side Ministry of Agriculture is not so happy!).

[Customs Notification No. 35 dated 30^th October 2026]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) read with section 124 of the Finance Act, 2021 (13 of 2021), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 19/2026-Customs, dated the 30th May, 2026, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 420(E), dated the 30th May, 2026, namely: -

In the said notification, in paragraph 2, for the figures and words “31st day of October, 2026”, the figures and words “31st day of December, 2026” shall be substituted.

[F. No. CBIC-190354/288/2021-TO(TRU-I)]