US EditionGovernment Extends Duty-Free Cotton Import to Bolster Textile Exports Amid US Tariff Hikes
The Indian government extended the cotton import duty exemption to offset US tariffs that reached 50%, aiming to support exporters and stabilize cotton supply for the textile sector.
- The Ministry of Finance said on Thursday, August 28, 2025, that the Central Government of India extended the duty-free import exemption on cotton till December 31, 2025 to support exporters.
- Effective August 27, the U.S. government imposed an additional 25% tariff, doubling duties to 50%, after India had set an interim exemption from August 19 to September 30 on cotton imports.
- By waiving the 5% Basic Customs Duty, 5% Agriculture Infrastructure and Development Cess, and 10% Social Welfare Surcharge, the order removes a cumulative 11% import duty on cotton to stabilize prices, lower production costs, and protect small and medium enterprises.
- Exporters in key manufacturing hubs like Tirupur, Noida, and Surat halted production amid tariff shocks, and industry leaders shipping more than $2 billion to the U.S. welcomed the cotton duty extension.
- For the season starting October 1, 2025, officials expect new crop arrivals to pick up after Deepavali, with the government raising the Minimum Support Price for cotton by 8% and the Cotton Corporation of India preparing MSP operations.
21 Articles
21 Articles
"Ensures affordable raw materials for textile industry, major relief to exporters": TN BJP chief welcomes extension of import duty exemption on cotton
Tamil Nadu BJP chief also stated that the INDIA bloc leaders are spreading panic among cotton farmers and deliberately "underestimating India's efforts to shield the sector from global disruptions".
India extends duty-free cotton imports to shield textile sector from US tariffs
For mills, the duty-free extension offers much-needed relief. The earlier exemption, ending in September, was too short to allow large imports, as shipments from exporting nations often take more than a month.
Relief for textile exporters: Govt waives 11% cotton import duty amid tariff heat
India has extended duty-free cotton imports till December 31 to support textile exporters facing steep US tariffs of over 60% on garments, jewellery and leather. The move is expected to lower input costs, stabilise cotton prices and provide relief to SMEs in the sector.
Govt extends import duty exemption on cotton till Dec 31 as 50% US tariffs come into effect
The import duty exemption on cotton has been a long-standing demand of the Indian industry, but the government has maintained an 11 per cent duty largely to protect small cotton farmers.
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