NASHVILLE, TN – India has suspended its 11 percent import duty on raw cotton from August 19 through September 30 in response to industry calls for relief. The waiver comes as U.S. tariffs on Indian apparel exports climbed to a combined 50 percent—25 percent base plus an additional 25 percent tied to India’s Russian oil purchases. The move aims to lower input costs for textile producers and help them remain competitive in export markets.
Although India is the world’s third-largest exporter of raw cotton, valued at $6.78 billion in fiscal 2024, local garment makers often rely on imports of specific varieties. Industry officials noted the suspension may be extended if market pressures persist. Reports from Reuters indicate some apparel exporters are weighing production shifts offshore to cushion against U.S. tariff impacts.
The duty-free window arrives as Indian spinners and textile mills prepare for festival orders and the upcoming Rabi season. Market watchers caution that while manufacturers gain temporary relief, cotton growers—especially in Maharashtra and Vidarbha—could face weaker farmgate prices if demand shifts toward imports. The short-term measure underscores the broader pressure India’s textile industry faces in balancing competitiveness with farmer incomes.