India likely to extend duty-free cotton imports through December
Three sources told Reuters that India is expected to extend its cotton import duty exemption to the end of December amid firm domestic prices.
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what happened
India is expected to extend its duty-free cotton import window by two more months, through the end of December, according to three government and industry sources. The move could ease costs for textile mills, cool domestic prices and lift shipments from the United States, Brazil and Australia. The 11% customs duty was waived from June 1 through October 31.
Domestic cotton prices remain above 9,000 rupees per 100 kg, well above the government's 8,717-rupee floor for the new season. Uneven monsoon rains have trimmed crop prospects, and the stock-to-use ratio of about 31% is the lowest in five years. Output in 2026-27 may fall below 29 million bales against demand above 34 million.
The finance, commerce and textile ministries did not immediately comment. India's cotton imports rose 63% year on year to $1.1 billion in the first six months of the fiscal year.
why it matters
For global markets, extra Indian demand could support cotton prices, especially with US futures trading above 83 cents per pound. Higher freight costs and a weaker rupee may still limit how much India actually buys.
market impact
Cotton: stronger Indian import demand supports global prices, while domestic Indian prices may ease
tags
instruments
sources
- India expected to extend duty-free cotton imports through December, sources say — Reuters, 26 October 2026 at 09:39 UTC
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