COMMODITY
Govt exempts all customs duties on import of raw cotton until September 30, 2025
Aug-20-2025

With an aim to stabilize domestic cotton prices and to support the textile industry, the Government has exempted all customs duties on the import of raw cotton with effect from August 19, 2025 until September 30, 2025. This includes the removal of both the 5% Basic Customs Duty (BCD), the 5% Agriculture Infrastructure and Development Cess (AIDC), and a 10% Social Welfare Surcharge on both, cumulatively in an 11% import duty on cotton.

The decision is likely to lower input costs across the textile value chain encompassing yarn, fabric, garments, and made-ups and provide much needed relief to manufacturers and consumers alike. The exemption responds to persistent demands from the textile industry, which has been urging the Government to eliminate import duties on cotton due to rising domestic prices and supply constraints. 

By temporarily waiving these duties, the Government aims to enhance the availability of raw cotton in the domestic market, stabilize cotton prices, thereby reducing inflationary pressure on finished textile products, support export competitiveness of Indian textile products by lowering production costs. Meanwhile, cotton imports have surged 107.4 per cent, rising from $579.2 million in FY2024 to $1.20 billion in FY2025.

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