Government has temporarily exempted all customs duties on cotton imports from June 1 to October 30, 2026 . Main idea is simple: make raw material more available and reduce pressure on textile and apparel value chain.
This move is being welcomed strongly by Indian textile industry,and especially by Apparel Export Promotion Council (AEPC) . For exporters,even small reduction in input cost can decide whether order is workable or loss-making.
Small and medium enterprises seem to be biggest gainers here . These are units that usually feel price shocks first,because they don’t always have big inventory cushion or deep pockets to absorb sudden cotton and yarn jumps .
Few things standing out clearly in this decision:
- Input cost reduction may help manufacturers price products more competitively.
- Small and medium enterprises could benefit from better cotton availability .
- Government is showing support for export-oriented manufacturing.
Dr. A. Sakthivel , AEPC Chairman,has thanked Prime Minister Narendra Modi and Union Minister for Finance Nirmala Sitharaman for this step . He called it timely support for sector,and tbh,from industry point of view,timing does matter here.
But one important point he raised is about spinning mills . Lower raw material cost should actually reach next stage also,meaning yarn prices need to be rationalized so exporters can secure and fulfill orders in better way.
That is where real test starts only . Policy relief at import level is good,but if benefit gets stuck somewhere in middle,then small exporters may not feel full impact.
Ongoing geopolitical tensions affecting cotton supply have already made planning difficult for many businesses . So this exemption may help India look more dependable as global sourcing destination,especially when buyers want stability .
And now question is whether this relief will actually flow through whole textile chain,from cotton imports to yarn to garment exporters… or whether everyone will keep waiting for next price shock again…
