Centre exempts all customs duties on cotton import from June 1 till Oct 30
New Delhi, May 30 The government on Saturday announced a temporary exemption on all customs duties on the import of cotton from June 1 till October 30, to augment its availability for the Indian textile sector amid geopolitical tensions.
The temporary duty exemption is expected to reduce input costs across the textile and apparel sector, thereby providing targeted relief to manufacturers and consumers, while also keeping the interests of domestic farmers in mind, according to an official notification.
The measure is anticipated to have a positive impact on the performance of the domestic textile industry, especially the small and medium enterprises, ensuring better availability of cotton in the market.
Earlier this month, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved an outlay of Rs 5,659.22 crore for the Mission for Cotton Productivity (2026-27 to 2030-31) aimed at addressing bottlenecks, declining growth, and quality concerns in India's cotton sector.
The mission aligns with the government's 5F vision (Farm to Fibre to Factory to Fashion to Foreign). It focuses on enhancing cotton productivity through the development of high-yielding variety (HYV) seeds resistant to disease and pests, scaling up of existing and latest crop production technologies through state governments, Krishi Vigyan Kendras, and State Agricultural Universities (SAUs) through large-scale promotion and adoption of latest crop production technologies, ensuring a least-contaminant cotton supply to industry, and promoting high-quality cotton exports.
The major focus of the mission is on the development of high-yielding, climate-resilient, pest-resistant seeds and other production technologies, upscaling improved cotton production technologies like High Density Planting System (HDPS), Closer Spacing (CS), Integrated Cotton Management, and promotion of Extra Long Staple (ELS) Cotton.
It also works on augmenting the quality of cotton through capacity building and promoting modernisation of ginning and processing factories, including the adoption of best processing practices and strengthening cotton testing infrastructure across the country with modern, standardised, and accredited facilities to ensure reliable quality assessment and global benchmarking.
The mission envisages accomplishing the production of 498 lakh bales (170 kg lint each) of cotton by enhancing lint productivity from 440 kg/ha to 755 kg/ha by 2031. Approximately 32 lakh farmers will benefit, leading to self-reliance.
— IANS
Reader Comments
Finally some relief! Our small garment unit in Tirupur was struggling with cotton prices touching ₹12,000 per quintal. This will help us compete with Bangladesh and Vietnam. But why only till October? Need long-term solution for raw material security. Jai Hind! 🇮🇳
I appreciate the 5F vision, but honestly, as a cotton farmer from Yavatmal, I'm worried. Every time they import duty-free, our incomes suffer. The productivity mission is good but why not announce higher MSP first? Our input costs have doubled in last 3 years.
Logical move given the global cotton shortage due to US-China tensions. India's textile industry employs 4.5 crore people direct and indirect. Short-term duty exemption will save many MSMEs facing closure. But I agree with others - need to protect farmer interests simultaneously. Balanced approach needed.
As a consumer, more affordable cotton means reasonable clothing prices. Cotton shirts have become too costly. But this is just a band-aid - the 5F mission needs to deliver results fast. We can't depend on imports forever. Self-reliance in cotton should be priority. 😊
Interesting policy move. In Australia, we've seen similar tariff suspensions during supply shocks. Smart to do this before kharif season. But the productivity targets - 498 lakh bales by 2031? That's ambitious. Hope technology transfer happens fast.
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