Government Suspends Cotton Import Duty for Five Months

The Central Government has officially suspended all customs duties on cotton imports for a five-month window, effective June 1, 2026, to bolster the domestic textile sector. This policy shift is expected to trigger a significant surge in bulk carrier traffic at major Indian ports like Mundra and JNPT. Maritime logistics firms, including Shipping Corporation of India and Great Eastern Shipping, are preparing for increased demand for Handysize and Supramax vessels to transport raw cotton shipments from international markets to Indian shores.

This surge in bulk commodity trade necessitates strict adherence to the International Maritime Solid Bulk Cargoes (IMSBC) Code, specifically regarding the moisture content and stowage of cotton bales. Under SOLAS Chapter VI, Regulation 2, masters must ensure that cargo information is provided well in advance to prevent spontaneous combustion risks associated with organic fibers. Compliance departments must also monitor MARPOL Annex V requirements for waste management during loading operations at busy terminals, ensuring that all documentation aligns with the latest customs exemptions and port health regulations.

Navigating officers and masters will see an increase in port calls and cargo handling complexities during this five-month exemption period. These officers must prioritize rigorous pre-loading surveys and ensure that hatch covers are fully watertight to prevent cargo damage from moisture. Maintaining accurate stowage plans and verifying the integrity of cotton bales during transit is essential to avoid port state control deficiencies and ensure smooth turnaround times at Indian terminals throughout the peak import season.