Textile Shares Rally After Government Waives Cotton Import Duty

Textile stocks witnessed strong buying interest on Monday after the Centre announced a temporary exemption from customs duties on cotton imports for five months. The move is expected to improve cotton availability and ease cost pressures for textile and apparel manufacturers.

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Shares of several listed textile companies gained sharply in early trade. Vardhman Textiles emerged among the top gainers, rising more than 6%. Pearl Global Industries, Raymond Lifestyle and Trident also advanced over 5%.

Gokaldas Exports, KPR Mill and Welspun Living gained more than 4% each, while Alok Industries recorded gains of over 3% during the session.

Duty Exemption Effective From June 1

The Finance Ministry, in a notification issued on May 30, announced that all customs duties on cotton imports would be exempted until October 30, 2026. The exemption came into effect from June 1.

The decision is aimed at increasing the domestic availability of cotton for the textile industry at a time when manufacturers are closely monitoring raw material supplies and costs.

Cotton is a key input for spinning mills, fabric manufacturers and garment exporters. Any savings from procurement activities can influence operational expenses throughout the value chain.

Industries Likely To Be Benefited

The government claims that the relief provided is going to benefit the textile and apparel industries through easier access to cotton supply. Cost savings from lower imports will help in managing production costs better.

The ministry has claimed that the policy will be very beneficial for the local textile industry, especially the smaller units which are at risk of being affected by changes in raw material prices.

The move will make it easier for domestic industries to procure cotton and is likely to provide relief to firms engaged in yarn manufacturing and textiles exports.

Market Reaction to Relief Measures

Investors felt that cost savings from relief measures were going to create favorable operating conditions for the textile industry. There was buying activity in stocks of companies with higher involvement in the manufacturing of cotton-related products.

Among the major beneficiaries, Vardhman Textiles recorded the sharpest rise, while stocks such as Gokaldas Exports, KPR Mill, Trident, Welspun Living and Raymond Lifestyle also traded higher following the announcement.

The government’s latest decision comes as the textile industry continues to focus on cost management and supply stability. With the duty exemption remaining in place until October 30, companies are expected to benefit from easier access to imported cotton during the period, while the sector closely tracks developments in raw material availability and pricing.