Government Considering Removal of Cotton Import Duty

On May 23, 2026, the Indian government entered advanced consultations regarding the potential removal of the 11 per cent customs duty on raw cotton imports. This policy shift, driven by intense lobbying from the textile sector, is expected to significantly alter trade volumes at major ports like Mundra and Nhava Sheva. Increased raw cotton shipments will likely boost demand for bulk carriers and container vessels, impacting logistics planning for shipping lines operating on key trade routes connecting India to global markets.

The surge in agricultural commodity trade necessitates strict adherence to the International Maritime Solid Bulk Cargoes (IMSBC) Code, specifically regarding the moisture content and stowage of cotton bales to prevent spontaneous combustion. Compliance departments must ensure that vessels, particularly those under the classification of major societies like IRS or DNV, maintain rigorous fire suppression systems as mandated by SOLAS Chapter II-2. Furthermore, MARPOL Annex V regulations regarding the discharge of cargo residues must be strictly followed to avoid port state control detentions during high-volume import cycles.

Navigating officers must prepare for increased port congestion and tighter turnaround schedules at major Indian terminals. These officers should prioritize precise cargo stowage planning and ensure that all documentation regarding hazardous cargo declarations is updated to reflect current customs regulations. By maintaining strict compliance with safety protocols during loading and discharging operations, navigating officers can mitigate the operational risks associated with the anticipated rise in cotton import volumes across the Indian maritime supply chain.