The Confederation of Indian Textile Industry (CITI) welcomed the decision of the union government to extend the cotton customs duty exemption till December 31, 2026.
“The waiver would sharpen the global competitiveness of the country’s textile and apparel sector, which is aiming for exports worth $100 billion by 2030,” Ashwin Chandran, Chairman of CITI said in a press release.
A joint study published in May 2026 by Gherzi and the International Cotton Advisory Committee (ICAC) concluded that Indian manufacturers need a cotton policy framework allowing them to compete effectively against Asian rivals, which enjoy duty-free access to overseas fibre.
According to Chandran, shipments from abroad are needed to plug the gap between demand and supply that stems from lower domestic output.
“Imports do not push out home-grown cotton and extending the cotton import duty waiver to December 2026 will help Indian textile and apparel firms hold down input costs,” he added.
“The step gives the value chain near-term certainty, allowing companies to schedule production cycles and fulfil export commitments more reliably,” Chandran stated
Durai Palaniswamy, chairman of the Southern India Mills Association (SIMA), estimated that the industry brought in roughly 72 lakh bales during the 2025-26 cotton season, benefiting from temporary exemptions that applied between June and October and easing the shortfall in domestic supply.
He recalled that cotton entered India free of duty from 2008 to 2021, an arrangement that served growers and mills alike.
Duty was imposed at a time when the country was a net exporter, shipping between 30 lakh and 70 lakh bales, and temporary exemptions have been granted since 2022.
Palaniswamy also noted that Indian cotton yields stand at 430-440 kg per hectare, compared with a global average of 815 kg/ha and more than 1,500 kg/ha achieved by over 20 nations.
Citing the pressing need for policy action to secure raw material supplies, he called for duty-free import of every cotton variety through to 2030.
“Mills across India are counting on sufficient fibre supplies to feed growing demand, after the government prolonged its exemption from customs duty on cotton,” The Hindu reported.
Domestic cotton market arrivals have stayed sluggish or below 70,000 bales daily, throughout the first month of the 2026-27 marketing season, which began in October and runs to September 2027.
