The government on Friday extended the customs duty exemption on cotton imports by two months till December 31, 2026, from the earlier deadline of October 31, 2026, to improve the availability of the fibre for the domestic textile industry.

The Ministry of Finance, through a notification dated October 30, amended the existing notification issued on May 30, 2026, to extend the exemption.

The extension is expected to help reduce input costs across the textile and apparel sectors by ensuring better availability of cotton in the domestic market, according to a Finance Ministry official. It is also expected to provide relief to manufacturers, particularly small and medium enterprises (SMEs), while balancing the interests of domestic cotton farmers, he added.

Cotton is a key raw material for India’s textile and apparel industry, and its availability and prices have a bearing on production costs across the value chain.

The extension is aimed at supporting the performance of the domestic textile industry by easing raw material constraints and helping manufacturers manage costs. Lower input costs could also provide some relief to consumers, depending on how much of the benefit is passed on through the supply chain.