India extends duty-free cotton import deadline to December 31, 2026
Business
India just pushed the deadline for duty-free cotton imports to December 31, 2026.
The goal? Help textile makers deal with pricey and scarce cotton at home by letting them bring in supplies from places like the US Brazil, and Australia without paying extra import fees.
India cotton shortfall, imports up 63%
Even after removing an 11% import duty earlier this year, cotton prices have stayed high, over ₹9,000 per 100kg, versus a support price of ₹8,717.
The 2026-27 season is estimated to produce under 29 million bales while demand is expected to exceed 34 million.
With unpredictable weather and pests hurting crops, imports are filling the gap, up 63% year-on-year to $1.1 billion during the first six months of FY27.
The textile industry is pretty relieved about the extension.