Govt exempts import duty on cotton till October 31

• The government exempted all customs duties on cotton imports from June 1 to October 31, 2026.

• The duty exemption will help increase the availability of cotton for the Indian textile sector.

• The temporary duty exemption is expected to reduce input costs across the textile and apparel sector, thereby providing a targeted relief to manufacturers and consumers, while also keeping the interests of domestic farmers in mind.

• Overall, the measure is anticipated to have a positive impact on the performance of the domestic textile industry, especially the small and medium enterprises, ensuring better availability of cotton in the market.

Cotton sector in India

• Cotton is one of the most important cash crops and accounts for around 23 per cent of the total global fibre production. 

• India occupies first position in the world in cotton acreage with 113.60 lakh hectares under cotton cultivation which is around 36 per cent of the world area of 316.20 lakh hectares. 

• Approximately 62 per cent of India’s cotton is produced on rain-fed areas and 38 per cent on irrigated lands. 

• Apart from being the provider of a basic necessity of life — clothing which is next only to food — cotton is also one of the largest contributor to India’s net foreign exchange by way of exports in the form of raw cotton, intermediate products such as yarn and fabrics to ultimate finished products in the form of garments, made ups and knitwear. 

• Due to its economic importance in India, it is also termed as “white gold”.

• Cotton plays a major role in sustaining the livelihood of an estimated six million cotton farmers and 40-50 million people engaged in related activities such as cotton processing and trade. 

• India grows all four known species of cultivated cotton. They are Gossypium arboreum, G.herbaceum, G.hirsutum and G.barbadense.

• To support the cotton industry, the government of India announces Minimum Support Price (MSP) for two basic staples groups — medium staple (24.5mm-25.5 mm) and long staple (29.5-30.5) cotton. 

• To support the cotton industry, government of India announces Minimum Support Price (MSP) for two basic staples groups — medium staple (24.5mm-25.5 mm) and long staple (29.5-30.5) cotton. 

• The Cotton Corporation of India Ltd (CCI), a Public Sector Undertaking under the Ministry of Textiles, is the nodal agency of government of India for undertaking MSP operations in the event of prevailing seed cotton (kapas) prices fall below the MSP level.

(The author is a trainer for Civil Services aspirants.)