The government on Thursday extended the exemption on import duty for cotton till December 31, 2025, in a bid to ensure adequate availability for the textile industry.
The Centre had earlier exempted the duty from August 19 to September 30.
“In order to support exporters further, the Central Government has decided to extend the import duty exemption on cotton from September 30, 2025, till December 31, 2025,” the Finance Ministry said in a statement, adding that a notification will be issued soon.
The exemption, notified by the Central Board of Indirect Taxes and Customs (CBIC), removes the 5 per cent Basic Customs Duty (BCD), the 5 per cent Agriculture Infrastructure and Development Cess (AIDC), and the 10 per cent Social Welfare Surcharge levied on both. Effectively, the entire 11 per cent duty on cotton imports has been waived.
According to the ministry, the move is expected to ease input costs across the textile value chain—yarn, fabric, garments and made-ups—and provide relief to manufacturers and consumers.
IANS
