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Raw materials

Import raw cotton

Spinning mills import long-staple cotton; duty is 5% BCD plus 5% AIDC, apart from temporary exemption windows.

Free to importHS 5201
Basic customs duty
5%
5% (Free for staple length above 32 mm, from 1 May 2026)
Social welfare surcharge
10% of BCD
IGST
5%
5%
India’s imports, 2025-26
US$ 1.86 bn
from 40 countries

The tariff rate for cotton of heading 5201 is 5%. The Finance Bill 2026 (Fifth Schedule) made tariff item 5201 00 25 (staple length over 32 mm) “Free” from 1 May 2026, replacing the old Nil exemption at S. No. 171 of Notification 45/2025-Customs. Cotton also carries 5% AIDC. Notification 19/2026-Customs exempted all cotton of 5201 from BCD and AIDC from 1 June to 31 October 2026; that window ended on 31 October 2026, so confirm on ICEGATE whether it has been extended before you price a contract. IGST is 5% (Schedule I, entry 5201 to 5203). AIDC 5% (Notification 11/2021-Customs as amended) CBIC — Customs Tariff of India (import tariff, chapter PDFs) ↗

What is imported

India grows a lot of cotton but spinning mills still import extra-long-staple and contamination-free cotton for fine yarns. In 2025-26 India imported about US$ 1,857 million of raw cotton, mainly from Brazil, the USA, Australia and Mali (TradeStat). Buyers are spinning mills, yarn exporters and cotton traders.

Import policy · Free to import

Free under ITC(HS) Schedule 1, but every consignment needs plant quarantine clearance.

Licences and registrations you need

  • Plant Quarantine (PPQS)Get an import permit through PQMS before shipment. The exporting country's phytosanitary certificate and any fumigation or additional declaration required by the Plant Quarantine (Regulation of Import into India) Order, 2003 must accompany the cargo.pqms.cgg.gov.in ↗

What is checked at the port

  • Plant quarantine inspection and sampling at the port before Customs releases the bales.
  • Staple length on the invoice and test certificate, because it decides the tariff line and duty.
  • Weight and moisture against the contract; bales are weighed on arrival.

Practical tips

  • Buy on recognised international cotton contract terms and name the HVI test parameters (staple, micronaire, strength) in the contract.
  • Time your shipments with the duty position: check ICEGATE for any exemption window before fixing the shipment month.
  • Ask your clearing agent to apply for the PQ permit early; cotton cannot be released without it.

Where new importers go wrong

  • Pricing a contract on an exemption that ends before the ship arrives — duty is charged on the date of the bill of entry.
  • Shipping without the phytosanitary certificate or fumigation record, which leads to detention or re-export.
Sources (9)
  1. CBIC — Customs Tariff of India (import tariff, chapter PDFs)
  2. Finance Bill 2026 — Fifth Schedule (Customs Tariff changes from 1 May 2026)
  3. CBIC — Notification 45/2025-Customs dated 24.10.2025 (effective BCD rates, in force 1.11.2025)
  4. Notification 11/2021-Customs — Agriculture Infrastructure and Development Cess (as first issued)
  5. CBIC Tax Information portal — customs notifications (incl. 19/2026-Customs on cotton)
  6. CBIC — Notification 9/2025-Integrated Tax (Rate), in force 22.09.2025
  7. Plant Quarantine Management System (PQMS) — import permits
  8. DGFT — ITC(HS) import policy (Schedule 1)
  9. Commerce Ministry TradeStat — commodity-wise imports by country (FY 2025-26)

Import data

Where India buys raw cotton

India’s imports from the Department of Commerce’s TradeStat, country by country. US$, financial years.

Imports, 2025-26
US$ 1.86 bn
Change from 2024-25
+54.6%
Supplying countries
40
Biggest supplier
Brazil
22%
Brazil: US$ 403 mnUnited States of America: US$ 385 mnAustralia: US$ 373 mnSingapore: US$ 106 mnEgypt: US$ 87.3 mnSwitzerland: US$ 79.4 mnTanzania: US$ 52.1 mnCôte d’Ivoire: US$ 32.1 mnTürkiye: US$ 27.6 mnTogo: US$ 25.5 mnBenin: US$ 19.2 mnSudan: US$ 13.6 mnBrazil: US$ 403 mnBrazilUnited States of America: US$ 385 mnUnited States of AmericaAustralia: US$ 373 mnAustraliaSingapore: US$ 106 mnSingaporeEgypt: US$ 87.3 mnEgyptSwitzerland: US$ 79.4 mnSwitzerlandTanzania: US$ 52.1 mnCôte d’Ivoire: US$ 32.1 mnTürkiye: US$ 27.6 mnTogo: US$ 25.5 mnBenin: US$ 19.2 mnSudan: US$ 13.6 mnIndia
Where India imports raw cotton from — among our 80 countries, 2025-26
2020-21: US$ 362 mn3622020-212021-22: US$ 539 mn5392021-222022-23: US$ 1.41 bn1.4k2022-232023-24: US$ 579 mn5792023-242024-25: US$ 1.2 bn1.2k2024-252025-26: US$ 1.86 bn1.9k2025-26
India’s raw cotton imports · US$ million

Biggest supplying countries

Name2025-26Change
1BrazilUS$ 403 mn+123%
2United States of AmericaUS$ 385 mn+64.5%
3AustraliaUS$ 373 mn+44.3%
4MaliUS$ 160 mn+169.2%
5SingaporeUS$ 106 mn+208.6%
6EgyptUS$ 87.3 mn-24.9%
7SwitzerlandUS$ 79.4 mn+55.5%
8TanzaniaUS$ 52.1 mn+74.5%
9Côte d’IvoireUS$ 32.1 mn-40.3%
10TürkiyeUS$ 27.6 mn+121.6%
11TogoUS$ 25.5 mn-19.1%
12BeninUS$ 19.2 mn+575.7%

Which sources are growing and shrinking

Growing sources

  1. BeninUS$ 2.8 mn → US$ 19.2 mn+575.7%
  2. SingaporeUS$ 34.2 mn → US$ 106 mn+208.6%
  3. MaliUS$ 59.4 mn → US$ 160 mn+169.2%
  4. BrazilUS$ 181 mn → US$ 403 mn+123%
  5. TürkiyeUS$ 12.4 mn → US$ 27.6 mn+121.6%
  6. TanzaniaUS$ 29.9 mn → US$ 52.1 mn+74.5%

Shrinking sources

  1. NetherlandsUS$ 25.4 mn → US$ 5.5 mn-78.4%
  2. SenegalUS$ 24.3 mn → US$ 9.3 mn-61.8%
  3. Côte d’IvoireUS$ 53.8 mn → US$ 32.1 mn-40.3%
  4. CameroonUS$ 19.2 mn → US$ 12.8 mn-33.3%
  5. EgyptUS$ 116 mn → US$ 87.3 mn-24.9%
  6. TogoUS$ 31.5 mn → US$ 25.5 mn-19.1%

Which forms come in, and at what price

Imports by 8-digit tariff line, 2025-26. Average price = total value ÷ total quantity.

Tariff lineValue 2025-26ChangeQuantityAverage price
Cotton, other than indian, of staple length exceeding 27.0 mm but n...5201 00 24US$ 1.64 bn+78.5%9,42,872 tonnesUS$ 1.74 per kg
Cotton, other than indian, of staple length exceeding 32.0 mm5201 00 25US$ 209 mn-23.1%60,869 tonnesUS$ 3.44 per kg
Indian cotton of staple length 28.5mm (1.4/32) and above but be...5201 00 15US$ 8.6 mn+13.6%8,271 tonnesUS$ 1.04 per kg
Cotton, other than indian, of staple length exceeding 20.0 mm but n...5201 00 22US$ 820k—494 tonnesUS$ 1.66 per kg
Cotton, other than indian, of staple length exceeding 24.5 mm but n...5201 00 23US$ 390k-45.8%260 tonnesUS$ 1.50 per kg
Cotton, other than indian, of staple length not exceeding 20.0 mm5201 00 21US$ 240k-91.5%450 tonnesUS$ 0.53 per kg

Source: TradeStat — Export Import Data Bank, Department of Commerce · Figures taken 29 October 2026.

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