The government has suspended the duty on cotton imports from June 1 to October 31, 2026, a move welcomed by spinning mills and apparel exporters facing elevated raw material costs and tighter global competition. Industry stakeholders believe the decision comes at a critical time, as global buyers reassess sourcing destinations based not only on labour costs, but also on raw material flexibility, supply reliability, and trade agreement advantages.
NITMA has welcomed India’s temporary suspension of the 11 per cent cotton import duty, calling it a strategic move to improve export competitiveness rather than merely a short-term relief measure.
The association said lower input costs will strengthen the textile value chain, support supply chain stability, enhance export opportunities and help the industry compete effectively in global markets.
NITMA said the temporary waiver would help reduce the cost disadvantage faced by Indian manufacturers, particularly when competing with Asian textile-exporting nations that already have duty-free access to imported cotton.
“Amid ongoing global volatility, the 11 per cent import duty was a major hindrance to our sector’s global competitiveness, especially since our primary Asian peers already enjoy duty-free access to international cotton,” said Sidharth Khanna, president of NITMA.
The association noted that the move could strengthen India’s position ahead of upcoming trade opportunities, including the expected implementation of the India-UK free trade agreement. Lower fibre costs may allow exporters to quote more competitively for upcoming apparel sourcing cycles.
Another emerging aspect is the government’s growing emphasis on balancing farmers’ interests with export growth. NITMA said specialised imports aimed at filling quality and seasonal gaps would complement rather than replace domestic cotton procurement.
The association added that easing input pressure across spinning, fabric and garment manufacturing could support the broader objective of achieving $100 billion in textile and apparel exports by 2030.
“The removal of the import duty on cotton is a strategic intervention that will stabilise the supply chain and support the entire value chain during a period of acute raw material stress,” said Munish Avasthi, senior vice president of NITMA. He added that the measure would help sustain the textile sector’s contribution to employment, GDP, and exports during a period of global uncertainty and volatile commodity markets.
Industry participants are also closely watching whether the temporary duty suspension triggers a broader debate around India’s long-term cotton trade policy, especially as mills continue to seek more predictable raw material access to support export-led growth.
Fibre2Fashion News Desk (KUL)
