New Delhi, May 31 -- The government on Saturday exempted customs duty on cotton imports for five months starting from Monday, to ensure adequate availability of the raw material at competitive rates for domestic textiles industries "This notification shall come into force with effect from the 01st day of June, 2026, and shall remain in force up to and inclusive of the 31st day of October, 2026," the Union finance ministry said in an order. The import duty on cotton was reinstated at 11% on January 1, after a brief hiatus from August to December 2025. A government spokesperson said the government has "temporarily" exempted all customs duties on import of cotton to augment its availability for the Indian textile sector. "The temporary duty exemption is expected to reduce input costs across the textile and apparel sector, thereby providing a targeted relief to manufacturers and consumers, while also keeping the interests of domestic farmers in mind," he said, adding that the measure was expected to have a positive impact on the performance of the domestic textile industry, especially the small and medium enterprises (SMEs). Confederation of Indian Textile Industry (CITI) said the temporary exemption can help Indian textile and apparel sector to become more competitive in the international market amid global headwinds. CITI chairman Ashwin Chandran said the import duty was driving up costs across the value chain and having a detrimental impact on scaling India's textile and apparel exports. India's textile exports are dominated by cotton. It competes with countries like Sri Lanka, Bangladesh and Vietnam in the price-sensitive international apparel market, where margins are very thin. Even as India aims for $100 billion in textiles and apparel exports by 2030, ready-made garment exports (all types) witnessed 1.4% annualized contraction in 2025-26 at $15.8 billion....