India extends exemption of cotton import duty till Dec

India has extended the exemption of import duty on cotton until December 31 this year to ease supply pressure on its textile export sector, which has been facing steep tariffs in the United States.

The Finance Ministry said the facility, first announced on August 19 and scheduled to expire on September 30, will now continue for another three months.

"To augment the availability of cotton for the Indian textile sector, the Central Government had temporarily exempted the import duty on cotton from August 19 till September 30. In order to support exporters further, the exemption will remain in force till December 31," the ministry said in a statement yesterday.

India, the world's second-largest cotton producer after China, earlier levied 11 percent duty on cotton imports.

Its textile and gems and jewellery exports have been hit hard by a 50 percent US tariff, including a 25 percent penalty linked to oil imports from Russia.