The Centre has extended the customs duty exemption on cotton imports by two months till December 31, 2026, from the earlier deadline of October 31, 2026. The move aims to improve the availability of raw cotton in the domestic market and ease input cost pressures on the textile and apparel industry.
The Ministry of Finance notified the extension through Notification No. 35/2026-Customs, dated October 30, amending its earlier notification issued on May 30, 2026.
The amendment replaces the existing deadline of October 31, 2026, with December 31, 2026, thereby extending the period of exemption by two months. The notification was issued under Section 25(1) of the Customs Act, 1962, read with Section 124 of the Finance Act, 2021.
The extension is expected to provide relief to textile and garment manufacturers by reducing procurement costs and ensuring a more consistent supply of raw materials. Small and medium enterprises (SMEs), which rely heavily on cotton for their manufacturing operations, are likely to benefit from improved availability and lower input cost pressures.
The measure is also aimed at supporting the wider textile and apparel value chain, potentially easing production costs and providing indirect relief to consumers.
The government has stated that the decision was taken in the public interest. The amendment has been made to Notification No. 19/2026-Customs, published in the Gazette of India, by the Department of Revenue under the Ministry of Finance through the Central Board of Indirect Taxes and Customs.
(ANI)
