India is unlikely to extend duty-free cotton imports beyond December 2025, signalling a potential shift in trade policy aimed at protecting domestic growers, according to industry sources.
The temporary waiver on import duties was introduced to ease raw material shortages and curb rising prices for the textile sector, which has faced tight supplies and volatile global markets. With domestic cotton arrivals expected to improve in the coming season, policymakers are seen as reluctant to continue concessional imports.
Industry participants said the government is increasingly focused on supporting farm incomes amid concerns over acreage, yields and price realisations for cotton growers. Extending duty-free imports could exert downward pressure on local prices, particularly during the peak marketing period.
Textile mills, however, have cautioned that ending the duty waiver could raise input costs, especially if domestic production falls short of demand or quality requirements. Import dependence has remained limited, but duty-free access has helped mills source specialised varieties and bridge supply gaps.
Officials indicated that any decision would be guided by domestic crop estimates, price trends and inflation considerations closer to the deadline. For now, the policy stance suggests a return to standard import duties after December 2025, barring unexpected supply disruptions or sharp price spikes in the domestic market.