India extends duty-free cotton imports by two months to ease domestic prices

India has prolonged its exemption from cotton import duties through December, adding two months to the relief that had been due to end on October 31. The government’s move is intended to improve availability for textile producers, soften local cotton prices and encourage purchases from suppliers including the United States, Brazil and Australia. Business Recorder reported the decision, citing Reuters.

The 11% levy had been suspended from June 1 as India sought to increase supplies during a period of limited availability. Prices have stayed firm despite the usual arrival of new-season cotton in October, amid worries that irregular monsoon rainfall could reduce output. Textile mills had asked for more time to import without the duty, and Reuters had reported earlier this week that an extension was expected.