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Centre Extends Import Duty Exemption on Cotton Till December 2025

The duty exemption aims to stabilize domestic cotton prices and support exporters facing a 50% US tariff, benefiting millions in India's textile sector including small and medium enterprises.

  • The central government extended the import duty exemption on raw cotton until December 31, 2025, following an initial waiver from August 19 to September 30.
  • The exemption aims to reduce production expenses and strengthen the textile industry by improving access to affordable cotton amid domestic supply constraints and rising costs.
  • The government has dedicated ₹5,900 crore to boost cotton production and has raised the minimum support price to safeguard farmers' interests and ensure a stable supply.
  • Industry leaders requested a 30% collateral-free loan with 5% interest subvention and extensions of export benefits like RoSCTL to aid cotton exporters amid tariff challenges.
  • The duty relief aims to maintain a consistent supply of raw cotton, keep domestic prices stable, and enhance the competitiveness of the textile industry despite challenging US tariff conditions.
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Moneycontrol broke the news in India on Thursday, August 28, 2025.
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