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The Centre has extended the customs duty exemption on cotton imports by two months till December 31, 2026, from the earlier deadline of October 31, to improve raw material availability and ease input costs for the domestic textile and apparel industry.
The Union Ministry of Finance notified the extension through Notification No. 35/2026-Customs, dated October 30, amending an earlier notification issued on May 30, 2026. The notification was issued under Section 25(1) of the Customs Act, 1962, read with Section 124 of the Finance Act, 2021. The government said it had taken the decision after being "satisfied that it is necessary in the public interest". Under the amendment, the date "31st day of October, 2026" in the earlier notification has been replaced with "31st day of December, 2026", extending the exemption period by two months. The extension is expected to help reduce input costs across the textile and apparel industry and provide relief to manufacturers and consumers. It is also expected to improve cotton availability in the domestic market and support small and medium enterprises, which depend on the raw material for their operations. The extension is expected to improve the availability of cotton in the domestic market and ease input cost pressures across the textile and apparel value chain. It is likely to provide additional support to textile and garment manufacturers, particularly small and medium enterprises, by ensuring a more consistent supply of raw material for production. The measure is also intended to help manufacturers manage procurement costs while balancing the requirements of the textile industry with the interests of domestic cotton farmers. The amendment has been made to Notification No. 19/2026-Customs, dated May 30, 2026, published in the Gazette of India. The latest notification was issued by the Department of Revenue under the Ministry of Finance through the Central Board of Indirect Taxes and Customs. (ANI)
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