India extends the waiver of duties on cotton imports

Authorities have extended the zero-rate import duty on cotton until December 31, 2026, instead of the previously set deadline of October 31. Initially, the 11% duty was abolished starting June 1. This measure aims to increase raw material supplies for the textile industry amid a shrinking domestic harvest due to reduced acreage and drought in key producing regions.

According to expert estimates, cotton imports in the 2026-27 marketing year (October–September) will reach or exceed last year's record high of 71 lakh bales (170 kg each). For comparison, in the year ending September 2026, imports rose to 71 lakh bales from 41 lakh the previous year. Extending the concession will allow local mills to purchase high-quality, contamination-free cotton at competitive prices, thereby enhancing the competitiveness of textile products on the global market compared to countries such as Bangladesh and China.

Market participants note an increase in domestic cotton consumption, which is attributed to textile enterprises shifting from synthetic yarn to cotton due to the rising cost of polyester and viscose following the outbreak of hostilities in the Middle East. Meanwhile, domestic production in the 2026-27 season is projected at around 280 lakh bales against a consumption of 365 lakh bales, whereas in the previous season the harvest was 330 lakh bales and consumption was 315 lakh bales. The resulting deficit is planned to be covered through imports.

Currently, domestic prices for seed cotton remain at 66,000–67,000 rupees per candy (356 kg), and the price of imported cotton from Brazil, including delivery to the mill, is at a similar level. The new harvest is already arriving on the markets, but daily supply volumes stand at 70,000–80,000 bales, which is below market expectations due to falling yields and farmers withholding sales in anticipation of higher prices.