Gastronomic-Paradise

Federal authorities have prolonged the exemption of import duties on cotton until the end of the year, December 31st.

Government expands import duty exemption on cotton to December 31, 2025, supporting the textile industry. This decision is intended to reduce production costs for manufacturers and alleviate pricing pressure on consumers, due to declining domestic cotton production.

, and Administrator

2025 September 8 . 4:20 PM

1 min read

Federal government extends the waiver of customs duty on cotton imports until December 31.

Federal authorities have prolonged the exemption of import duties on cotton until the end of the year, December 31st.

The Indian Finance Minister, Nirmala Sitharaman, has announced an extension of the import duty exemption on cotton until December 31, 2025. This move is expected to bring significant relief to consumers and manufacturers in the textile industry, which is grappling with fluctuating raw material supplies.

The extension aims to reduce input costs across the textile value chain, including yarn, fabric, garments, and made-ups. With cotton representing 38% of the market, this extension is a strategic move to shore up the economic value of this crucial crop in the industry.

However, it's important to note that the extension does not mention any specific sources of funding or a timeline for implementation. Furthermore, it is not specified to affect any other industries beyond the textile sector.

The announcement was made public on August 28, 2025, at 6:54 IST. The extension is expected to provide much-needed breathing space for manufacturers in the textile industry, helping them navigate the challenges posed by fluctuating raw material costs.

Despite the lack of specifics regarding cost reductions, the extension is seen as a positive step towards stabilising the textile industry and promoting economic growth in this sector. As more details emerge, it will be interesting to see how this extension is implemented and the impact it has on the industry.