India may prolong its suspension of import levies on raw cotton by a further two months, taking the relief window to the end of December, according to three officials and industry figures with knowledge of the discussions.
According to a Money Control report, the step would lower input costs for spinners, temper local price pressures and open the door to larger consignments from American, Brazilian and Australian suppliers.
The country, which ranks second only to China in cotton output, had scrapped its 11% import tariff on the fibre for a five-month stretch running from June to October 2026, aiming to bolster availability during the off-season.
Ordinarily, local rates soften once fresh-crop supplies reach markets in October. This year, however, quotations have held firm because of weaker production forecasts, leading mills to lobby for a longer tariff-free buying period.
Once talks across concerned ministries conclude, the government is anticipated to publish a notification shortly, prolonging the exemption until the close of December at the minimum, the sources said.
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