“In order to support exporters further, the Central Government has decided to extend the import duty exemption on cotton (HS 5201) from September 30, 2025, till December 31, 2025. Just days ago, the government had temporarily exempted the import duty on cotton from August 19, 2025, till September 30, 2025,” the Ministry of Finance said in a press release.
It is important to note that India’s cotton marketing year begins on October 1, with new cotton arrivals picking up by mid-month. Higher arrivals usually drag down prices, reducing farmers’ earnings. Therefore, Indian farmers strongly oppose the removal of import duty on cotton.
On Monday, farmer organisation Samyukt Kisan Morcha (SKM) criticised the government for scrapping the 11 per cent import duty, calling it a “death blow” to over 60 lakh cotton-farming households. It warned of massive agitation if the August 19 notification was not withdrawn. The group opposed the exemption even in the off-season, as the new season will begin on October 1, 2025.
The extension aims to assure the industry of raw material security even in the first quarter of the peak arrival season. While duty exemption has been welcomed by industry organisations, they continue to demand financial relief to mitigate the impact of the 50 per cent US tariff.
ALCHEMPro News Desk (KUL)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
