India: Cotton Import Duty Rescinded Until Late September

On April 13, 2022, the Government of India rescinded its cotton import duty of 10 percent until September 30, 2022. This import duty consists of a five percent basic customs duty and a five percent Agriculture Infrastructure and Development Cess (AIDC), which has been reversed to “Nil” until the end of the Indian cotton marketing year (October/September). This reduction is expected to support the textile sector as they deal with record high domestic fiber prices. Indian ex-gin prices are currently 4-5 percent higher than the Cotlook-A Index, demonstrating that Indian supplies are more expensive than those of global competitors.