India waives import duty on cotton for 6 weeks
India has dropped its 11% import duty and agriculture cess on raw cotton from August 19 to September 30.
This move is meant to steady cotton prices as supplies tighten and demand climbs with the festival season coming up.
The biggest winner? US cotton exporters, since the US is India's top supplier.
Why is this happening?
India's homegrown cotton output has slipped from 33.7 million bales in 2022-23 to an estimated 30.7 million for 2024-25, while imports have shot up—from just 1.52 million bales last year to 2.71 million this year.
Textile industry reps are happy about the change, saying it helps keep Indian prices in line with global rates right when demand is peaking.
What does this mean for Indian textile industry?
Cheaper imported cotton should help mills and clothing makers keep yarn and fabric costs in check—so fewer price hikes for shoppers during festive sales.
While this waiver is only temporary, it also signals India's willingness to smooth things over with the US on trade issues, which could mean friendlier deals down the road for both countries' textile industries.