India’s textile producers will retain two more months of tax relief on raw cotton imports after the Ministry of Finance extended an exemption through Dec. 31, 2026.
Notification No. 35/2026-Customs, dated Oct. 30, changes the May 30 order’s Oct. 31 cutoff to Dec. 31. The extension moves the previously reported Oct. 31 expiration by two months.
Effective June 1, the original measure covers cotton under tariff heading 5201. It waives the full customs duty and the full Agriculture Infrastructure and Development Cess (AIDC).
When it introduced the exemption, the ministry said it was intended to increase cotton available to textile producers. It expected the measure to ease input costs and benefit manufacturers and consumers, including small and medium-sized enterprises. The ministry separately said it had considered domestic farmers’ interests.
The extension notice gives no estimates for import volumes, savings or cotton prices. It sets Dec. 31, 2026, as the end date and names no later review date.
