Pariksha SaathiGovernment extends the customs duty exemption on cotton imports by two months, up to 31 December 2026
Keeping in view the raw material requirements of the domestic textile industry, the Government of India has extended the existing customs duty exemption on cotton imports until 31 December 2026, the Ministry of Textiles said on 31 October 2026. The extension was notified by the Department of Revenue, Ministry of Finance, through Notification No. 35/2026-Customs dated 30 October 2026; the exemption, which was available until 31 October 2026, has been extended by two months. The Government said it remains conscious of the need to balance the requirements of the textile industry with the interests of domestic cotton farmers. The decision aims to augment the availability of cotton for the domestic textile sector, ensure the availability of cotton at competitive prices, support domestic manufacturing, address specialised cotton requirements and support value addition across the textile and apparel value chain. The measure is expected to give textile and apparel manufacturers greater flexibility 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 welcomed the decision of the Ministry of Finance.
Drafted with AI assistance from the official PIB release linked above and checked against it by a second AI pass. Not line-edited by a human.
Learning context
On 28 August 2025 the Ministry of Textiles said the Government had extended the import duty exemption on cotton until 31 December 2025 in view of the persistent demand-supply gap, through a decision notified by the Central Board of Indirect Taxes and Customs, and that textile associations had welcomed the move to exempt all varieties of cotton from the 11% import duty up to that date. It called the textile industry the country's second-largest employment provider, said most imports cater to specialised industrial requirements or brand-linked export contracts and do not replace domestic cotton, and said farmers' interests are safeguarded through the Minimum Support Price (MSP) mechanism operated by the Cotton Corporation of India Ltd. (CCI), which ensures that farmers receive at least 50% above their cost of production.
Check yourself: until what date was the cotton import duty exemption extended in August 2025, and from what rate of import duty were all varieties of cotton exempted?
Until 31 December 2025; the 11% import duty.
Revision task: from this release, note the new end date, the notification number and date, the department that issued it, the earlier end date, the length of the extension and the stated aims; from the note, the 2025 extension's end date, the duty rate waived and how farmers' interests are safeguarded.
Test yourself
Which department notified the extension of the customs duty exemption on cotton imports up to 31 December 2026?
Show the answer
Answer: Department of Revenue, Ministry of Finance
The extension was notified by the Department of Revenue, Ministry of Finance, vide Notification No. 35/2026-Customs dated 30 October 2026; the exemption, earlier available until 31 October 2026, was extended by two months, up to 31 December 2026. The Ministry of Textiles welcomed the decision.
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