New Delhi, Jan. 2 -- The temporary window allowing duty-free import of cotton has come to an end, with the government reinstating the 11 pc customs duty on cotton imports from January 1. The duty-free period, which was in place until December 31, was not extended further, bringing back the earlier tax structure on imported cotton.
The duty exemption was introduced to ease supply pressures faced by the domestic textile industry during a period of lower cotton availability and rising prices. During this window, mills were able to import cotton without paying customs duty, helping them manage raw material costs.
With the exemption now withdrawn, imported cotton will again attract an 11% duty, including basic customs duty and cess. This is ex...