New Delhi, 30 May (H.S.): In a major move to boost cotton availability and curb rising prices in India’s textile sector, the central government has announced a temporary full exemption from all customs duties and the Agriculture Infrastructure and Development Cess (AIDC) on cotton imports.

According to an official notification issued by the Ministry of Textiles on Saturday, the provision implemented by the Ministry of Finance (Department of Revenue) will take effect from June 1, 2026, and remain in force until October 31, 2026.

The government said the temporary exemption aims primarily to ensure adequate domestic supply of cotton so that the industry does not face raw-material shortages. The measure is expected to lower production costs across the textile and apparel sectors, with benefits passing on to both manufacturers and consumers.

The decision is likely to provide particular relief to micro, small and medium enterprises (MSMEs), which play a key role in the textile supply chain. Experts say reduced input costs should improve these units’ competitiveness and enhance production efficiency.

Following the policy change, India’s textile industry is expected to become more competitive in global markets. Industry observers believe the step will not only boost exports but also lend greater stability to domestic production.

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Hindusthan Samachar / Jun Sarkar