Particle.news
Download on the App Store
13 ARTICLES
·
7m ago

India Extends Duty-Free Cotton Imports Through December 31 to Aid Textile Exporters

Officials say the waiver will increase cotton availability to ease costs for the textile value chain.

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

Overview

  • The Finance Ministry said the HS 5201 exemption, first set for Aug. 19–Sep. 30, now runs to Dec. 31, removing the roughly 11% levy made up of 5% basic customs duty, 5% AIDC and a 1% surcharge.
  • New Delhi framed the step as relief for a labour‑intensive sector after US tariffs on many Indian goods rose to about 50% on Aug. 27, eroding price competitiveness in a key market.
  • Manufacturers had argued the initial window only covered in‑transit cargo, and the extension allows mills and exporters to place new import orders and stabilize yarn and garment prices.
  • The US Department of Agriculture welcomed the duty holiday, saying it is expected to increase US cotton bookings and help Indian exporters access contamination‑free fibre.
  • Analysts and industry observers cautioned the timing could pressure domestic farm prices during the October–March harvest even as India raised cotton MSP earlier this year.