The Finance Ministry has extended the exemption on cotton imports from October 31 to December 31, 2026, providing continued relief to India's textile industry, the country's largest cotton consumer.

According to a notification issued on October 30, 2026, the extension continues the import duty exemption originally introduced in May this year.

The decision comes amid concerns over lower cotton arrivals due to the impact of a weak Southwest monsoon on cotton production. Despite the new cotton marketing season beginning on October 1, daily arrivals have remained low.

Meanwhile, the textile industry expects cotton consumption to increase this year and has been seeking the removal of import duties to ensure adequate raw material availability and manage production costs.

The extension is expected to support textile manufacturers by providing continued access to imported cotton at reduced costs and easing raw material supply pressures.