New Delhi. The Central Government has taken an important decision for the textile and apparel industry of the country. The government has decided to temporarily remove customs duty on cotton import, which is expected to provide major relief to the industry. This system will come into effect from June 1, 2026 and will remain effective till October 30, 2026.
The objective of this step of the government is to provide adequate raw material to the domestic textile industry and keep the production cost under control. Experts believe that this decision will increase the competitiveness of the textile industry and will also strengthen the export sector.
Textile industry will get big relief
Cotton is considered the most important raw material of the textile industry. When its price increases, the production cost also increases, which affects the prices of clothes and other products. After the removal of import duty, companies will be able to buy cotton from abroad at a lower cost, which will make the production process more economical. Especially small and medium scale industries are likely to benefit greatly from this decision.
Availability of cotton will increase in the market
For some time, there was concern in the industry regarding the availability and prices of cotton. The government believes that exemption in import duty will increase the supply of cotton in the market and industries will be able to easily get the required quantity of raw material. Adequate availability of cotton will not affect production and textile manufacturing units will get the opportunity to work as per their capacity. This is expected to bring stability in production.
Consumers can also get benefits
When industries’ costs are reduced, their benefits can ultimately reach consumers as well. If the costs of textile manufacturers decrease, then a positive impact can be seen on the prices of clothes and apparel products in the coming time. However, the reduction in prices will also depend on market conditions and demand-supply.
The interests of farmers were also taken care of
The government has implemented this decision for a limited period so that the interests of domestic farmers are not affected. This exemption will continue till the new cotton crop arrives in the market. This will provide immediate relief to the industries, while farmers will also have the possibility of getting a fair price while selling their new crops.
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