Centre Waives Customs Duty on Cotton Imports Till October 31 to Boost Textile Sector
Babushahi Bureau
New Delhi, May 30, 2026: In a major relief to India’s textile industry, the Central Government has exempted the import of cotton from customs duty and Agriculture Infrastructure and Development Cess (AIDC) for a five-month period beginning June 1, 2026.
The exemption has been notified by the Ministry of Finance (Department of Revenue) through Notification No. 19/2026-Customs dated May 30, 2026, issued under the Customs Act, 1962 and the Finance Act, 2021.
According to the notification, all imported cotton falling under Customs Tariff Heading 5201 will be exempt from the whole of the customs duty leviable under the First Schedule to the Customs Tariff Act, 1975, as well as the Agriculture Infrastructure and Development Cess (AIDC).
The notification will come into force from June 1, 2026, and remain effective up to and including October 31, 2026.
The move is aimed at improving the availability of raw cotton for the domestic textile industry and supporting export competitiveness by reducing input costs. Industry stakeholders had been seeking relief amid concerns over cotton availability and rising production costs. The Centre had earlier adopted similar measures to support the textile sector during periods of supply pressure.
Key Provision of the Notification
| Sl. No. |
Customs Heading |
Description of Goods |
| 1 |
5201 |
Cotton |
The decision is expected to benefit spinning mills, textile manufacturers and exporters by ensuring smoother availability of raw material during the coming months. The Indian textile sector has been advocating temporary duty relief to maintain competitiveness in global markets and manage input costs.
