Duty-Free Cotton Imports End 31 October Unless Extended: What Ahmedabad Mills Should Know

By BizTorq News Desk, Surat · 19 October 2026 · 2 min read

India's waiver of the 11% import duty on raw cotton runs out on 31 October 2026. Unless the government extends it, the duty returns from 1 November, just as the new crop arrives with a higher minimum support price. Industry bodies have asked for an extension.

BizTorq Textile News cover: Duty-free cotton imports end 31 October unless extended

The window for importing raw cotton without customs duty is about to close. The government removed the 11% import duty on raw cotton from 1 June 2026, and the waiver is due to expire on 31 October. Unless it is extended, the duty is scheduled to return from 1 November 2026. As of mid-October, no extension had been announced in the reports we checked.

Why the waiver was introduced

The duty was lifted after cotton prices rose sharply earlier in the year, to improve supply and lower costs for spinners, weavers and garment exporters, especially smaller units. It was the second such waiver in 12 months. The Confederation of Indian Textile Industry (CITI) and the Apparel Export Promotion Council (AEPC) welcomed it at the time.

Mills made full use of it. The Cotton Association of India expects 2025-26 imports of about 62 lakh bales, a record, and raw cotton imports were up about 81% in September alone.

Calls for an extension

Government sources: in September, a report quoted unnamed government and industry sources saying the waiver may be extended until at least December. No decision had been taken.
CITI: chairman Ashwin Chandran called for "policy continuity" on cotton import duty, saying short waiver windows make planning difficult and that Indian exporters face a cost disadvantage against competitors such as Bangladesh and Pakistan.
Tiruppur exporters: the Tiruppur Exporters Association has asked for a six-month extension, citing higher cotton and yarn prices.
Farmers: cotton growers are worried that duty-free imports during harvest could pull down prices just as their new crop reaches the market.

Why it matters for Ahmedabad

Ahmedabad's spinning, weaving and denim mills are among the biggest buyers of cotton in Gujarat. If the 11% duty returns, imported cotton, often used for specialised and contamination-free grades, becomes costlier. At the same time, the new season's minimum support price is about 7% higher, at ₹8,267 a quintal for medium staple and ₹8,667 for long staple, which sets a firmer floor for domestic cotton. Spinners already say yarn prices are lagging behind fibre costs.

Read our earlier reports on record cotton imports and the 2026-27 cotton MSP. We will update this article if the government announces a decision.

What it means for Ahmedabad traders

Mills and traders with import contracts should check whether shipments will clear customs before 31 October, since cotton landing after that date may attract the 11% duty if no extension comes. Buyers of cotton yarn and fabric in Ahmedabad should expect firmer rates if the duty returns, and may want to avoid long fixed-price commitments until the government's decision is clear.

Questions traders are asking

When does India's duty-free cotton import window end?

The waiver of the 11% import duty on raw cotton runs until 31 October 2026. Unless extended, the duty is scheduled to return from 1 November.

Will the cotton import duty waiver be extended?

Not announced as of mid-October 2026. September reports quoted unnamed sources saying an extension until at least December was likely, and industry bodies have asked for one.

How does the cotton import duty affect Ahmedabad mills?

If the 11% duty returns, imported cotton becomes costlier, which together with a higher MSP could push up cotton yarn and fabric costs.

Sources

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