India extends duty-free cotton imports by two months to ease domestic prices
- To support textile mills and stabilize prices, encouraging global trade
MUMBAI: India has extended duty-free cotton imports by two months until the end of December, the government said, a move that could lower costs for textile mills, ease domestic prices and boost shipments from the US, Brazil and Australia.
India, the world’s second-largest cotton producer after China, waived the 11% import duty on cotton from June 1 to October 31 to boost supplies during the lean season.
Domestic cotton prices typically ease as new-season supplies arrive in October, but have remained firm this year due to concerns about lower production after patchy monsoon rains, prompting textile mills to seek an extension of the duty-free import window.
India may extend duty-free cotton imports
Reuters reported this week that an extension was likely.