This notification was issued by the Finance Ministry, as per notification no. 19/2026-Customs, stating that cotton imported under tariff heading 5201 will be exempt from both customs duty and the Agriculture Infrastructure and Development Cess during this period.
The government indicated that this temporary exemption aims to bolster the supply of cotton to the textile sector.
It mentioned that this initiative is anticipated to reduce input costs throughout the textile and apparel industries, offering support to manufacturers and consumers alike while considering the interests of domestic cotton producers.
Additionally, the government noted that this measure is expected to aid the local textile sector, especially small and medium enterprises, by increasing cotton availability in the marketplace.
