Cotton Import Duty Suspended; Textile Stocks to Gain - HDFC Sky

Importers of cotton and stakeholders in the textile industry should note a significant development: the import duty on cotton has been suspended. This change was reported on June 1, 2026, by HDFC Sky.

This suspension is expected to provide considerable relief to businesses that import raw cotton, potentially reducing their input costs. The textile sector, which relies heavily on cotton as a primary raw material, stands to benefit directly from this measure. The news source specifically highlighted that "Textile Stocks to Gain," indicating a positive outlook for companies within this industry due to the reduced cost of imported raw materials.

While the import duty on cotton has been suspended, the initial report from HDFC Sky on June 1, 2026, did not specify the previous duty rate, the precise effective date of the suspension, or its anticipated duration. Importers should be aware that these critical details are not yet publicly available from this source.

In light of this development, importers and trade compliance officers are advised to take the following steps:

• Verify Official Notifications: Consult official government and customs circulars for the precise effective date, the exact scope of the suspension, and any conditions that may apply. This will ensure accurate compliance and duty calculation.
• Update Internal Systems: Once official details are confirmed, ensure that your customs declaration and enterprise resource planning (ERP) systems are updated to reflect the duty suspension.
• Monitor for Further Updates: Stay informed about any subsequent announcements regarding the duration of the suspension or any other changes to cotton import policies.
• Consult Trade Experts: If there is any ambiguity regarding the application or specifics of the duty suspension, consider consulting with customs brokers or trade compliance legal counsel to ensure accurate and timely compliance.