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57m ago

India Extends Duty-Free Cotton Imports Through December 2025 as US Tariffs Hit Exporters

The move targets lower input costs for mills under pressure from new 50% US duties on Indian goods.

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A worker feeds raw cotton into an opener machine at a processing facility in Amritsar
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Overview

  • New Delhi extended the cotton (HS 5201) import duty exemption from the original Aug. 19–Sept. 30 window to Dec. 31, 2025.
  • Before the waiver, imports carried an effective levy of about 11% covering 5% basic customs duty, 5% AIDC and a surcharge.
  • The decision followed the start of US 50% tariffs on Indian goods on Aug. 27, with industry bodies saying the longer window enables fresh orders.
  • The US Department of Agriculture welcomed the duty removal and said it is expected to increase US cotton bookings for Indian mills.
  • Analysts and farmer groups cautioned that the exemption overlaps with the October–March harvest season, which could pressure domestic cotton prices.