NITMA Welcomes Temporary Removal of 11% Cotton Import Duty to Support Textile Sector

Policy effective from June 1 to October 31, 2026, aimed at easing raw material costs and addressing supply chain challenges for the textile and apparel industry

The Northern India Textile Mills Association (NITMA) has expressed support for the Government of India’s decision to temporarily eliminate the 11% import duty on raw cotton between June 1 and October 31, 2026.

According to NITMA, the move is expected to provide margin relief to the MSME-dominated textile and apparel sector during off-season supply shortages while helping stabilize the supply chain amid global market challenges.

Commenting on the development, Shri Sidharth Khanna, President of NITMA, said:

“Amid ongoing global volatility, the 11% import duty was a major hindrance to our sector’s global competitiveness, especially since our primary Asian peers already enjoy duty-free access to international cotton. We extend our sincere gratitude to the Hon’ble Prime Minister, Union Ministers of Finance, Textiles, Commerce, and Agriculture & Farmers Welfare for swiftly delivering this much-needed relief.”

NITMA highlighted several expected outcomes from the temporary duty waiver. The association said lower raw material costs could help exporters maximize benefits from upcoming trade agreements, including the imminent UK FTA. It also noted that specialized and quality-driven cotton imports could help address domestic supply gaps for export orders without displacing local production.

The association further stated that stronger manufacturing activity supports the “Industry Plus Farmer” synergy and the “5F” vision, while also contributing to long-term economic opportunities for cotton growers. NITMA added that the measure could help address the recent FY26 export decline and support efforts toward achieving the textile sector’s $100 billion export target by 2030.

Sharing his views on the policy decision, Shri Munish Avasthi, Senior Vice President of NITMA, said:

"The removal of the import duty on cotton is a strategic intervention that will stabilize the supply chain and support the entire value chain during a period of acute raw material stress. It acts as a critical enabler for India's second-biggest employing sector to sustain its major contribution to the national GDP and global exports."

NITMA stated that it will continue to work with policymakers on measures aimed at supporting a resilient and globally competitive textile sector.