The Indian government’s decision to move extra long staple (ELS) cotton to the First Schedule, effectively reducing customs duty to zero, is expected to boost India’s high-value textile and apparel exports, according to the trade body Cotton Association of India (CAI). The Budget 2026-27 has moved ELS cotton to the First Schedule (zero customs duty).
Vinay N Kotak, Chairman, CAI said the Budget is designed as a futuristic, growth-oriented blueprint, aimed at establishing India as a global manufacturing hub and securing its position as the world’s third largest economy.
“One of the important changes in the Customs Schedule, which is aimed at providing relief to enable manufacturing is to move Extra Long Staple Cotton to First Schedule (zero Customs Duty). This will boost exports of our finished textile products and increase India’s share in the world textile markets,” Kotak said in a statement. India imports around 5-7 lakh bales of ELS cotton mainly from USA and Egypt, he said.
Improving access
Cotton with fibre length of 33 mm and above is called ELS cotton, a key input for manufacturing premium yarns, fine fabrics and high-end garments. Since domestic production of ELS cotton is limited, Indian textile manufacturers depend on imports to meet quality requirements for export markets. The removal of import duty is expected to lower raw material costs and improve access to high-quality fibre, enhancing the global competitiveness of Indian exporters.
The ELS cotton is grown in approximately 2 lakh hectares, predominantly under the DCH-32 variety in parts of Karnataka such as Dharwad, Haveri and Mysuru districts, also in Coimbatore, Erode and Dindigul in Tamil Nadu and in Ratlam in Madhya Pradesh.
Published on February 6, 2026
