The Government has extended the exemption from import duty on cotton up to 31 October 2022.
The Finance Ministry has issued a notification in this regard. Earlier the same was allowed till 30 September 2022.
There was 11 per cent import duty (5 percent basic customs duty and 5 percent agri infra development cess) on cotton,but in mid April, the Government removed the cotton duty up to 30 September 2022.
The industry had asked to extend the exemption. Though the cotton prices have started coming down, the extension of the duty free import for one more month will also help the industry.
Also Read: Cotton import is now duty free till 30 September
It is being said that an extended window till December would have hampered the domestic prices and hurt the cotton farmers. However, a moderate relaxation in the deadline until 31 October is likely to protect the interests of both the stakeholders – the industry and the farmers. India’s cotton crop arrival starts around October-November.
