AEPC Backs Temporary Customs Duty Waiver on Cotton Imports

The Apparel Export Promotion Council (AEPC) has welcomed the Government of India’s announcement to temporarily remove all customs duties on cotton imports for the period from 1st June 2026 to 30th October 2026.

The council stated that the measure is expected to increase the availability of cotton for the Indian textile and apparel industry while providing relief to stakeholders across the value chain.

Welcoming the decision, Dr. A. Sakthivel, Chairman, AEPC, expressed his sincere gratitude to Hon'ble Prime Minister Shri.Narendra Modi ji, Hon’ble Finance Minister Smt. Nirmala Sitharaman, Hon’ble Union Minister of Commerce & Industry Shri Piyush Goyal, Hon’ble Union Minister of Agriculture & Farmers Welfare Shri Shivraj Singh Chouhan, Hon’ble Union Minister of Textiles Shri Giriraj Singh, for their timely intervention and support to the textile and apparel industry.

Dr. A. Sakthivel also conveyed his special gratitude to Hon’ble Minister of State for Information & Broadcasting and Parliamentary Affairs, Shri L. Murugan, for his constant support, valuable coordination, and proactive efforts in addressing the concerns of the textile and apparel industry.

According to Dr. Sakthivel, the temporary customs duty exemption is expected to lower input costs across the textile and apparel sector, improve cotton availability, and strengthen the competitiveness of Indian textile and apparel exports. He noted that the decision is likely to benefit small and medium enterprises that have been affected by the sharp rise in cotton and yarn prices.

He further stated that the removal of customs duty on cotton imports is the need of the hour and will help moderate domestic cotton prices. In this regard, he appealed to all spinning mills to pass on the benefits of lower cotton costs by rationalising yarn prices. He added that this would help stabilise the textile value chain and enable garment exporters to secure and execute export orders more competitively in the coming months.

Dr. Sakthivel said that AEPC has been consistently raising the issue before the Hon’ble Ministers of Finance, Commerce & Industry, Agriculture, and Textiles through a series of meetings and submissions, highlighting the urgent need to remove customs duty on cotton imports. He stated that the Government’s decision reflects the outcome of these efforts and its continued engagement with the textile and apparel sector.

AEPC stated that the measure is expected to strengthen India’s position as a global sourcing destination, improve export competitiveness, and support the growth of textile and apparel exports from the country.