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2h ago

India Waives Cotton Import Duty Until Sept. 30 to Support Textile Sector Facing US Tariffs

The short waiver signals cost relief for the textile supply chain under pressure from steep US levies.

Before the exemption, cotton imports were subject to an 11 per cent duty.
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RAW COTTON

Overview

  • A Finance Ministry notification removes the 11% levy and the Agriculture Infrastructure and Development Cess on raw cotton from Aug 19 through Sept 30, citing “public interest.”
  • US duties on Indian exports total 50%, with an additional 25% scheduled for Aug 27 and linked in reports to India’s Russian oil purchases, intensifying risks for apparel exporters.
  • Industry groups including the Confederation of Indian Textile Industry welcomed the step as aligning domestic prices with global levels and easing input costs ahead of the festive season.
  • The move is viewed by some analysts as a calibrated goodwill gesture that also benefits American cotton suppliers, and a planned US trade delegation visit on Aug 25 was cancelled with no new date set.
  • Supply pressures persist at home, with output estimated around 30.7 million bales in FY25 and imports rising to 2.71 million bales, while textile shares gained 3%–8% after the announcement.