Shares of textile companies witnessed strong buying interest after the Government of India announced a temporary exemption of customs duties on cotton imports, a move aimed at improving cotton availability and supporting the domestic textile industry.
The Finance Ministry stated that all customs duties on cotton imports will remain waived from June 1, 2026, to October 30, 2026. The decision is intended to enhance the supply of contamination-free cotton for textile manufacturers and exporters while helping reduce input costs across the textile and apparel value chain.
The government noted that the temporary duty exemption would improve cotton availability for the sector, support export-oriented businesses and provide relief to small and medium enterprises that have been affected by higher raw material costs.
The announcement triggered a broad-based rally in textile stocks, with investors anticipating improved margins and stronger operational performance for companies dependent on cotton as a key raw material.
Indo Count Industries emerged as one of the top gainers, rising 10.45%, followed by Raymond Lifestyle, which advanced 7.23%. Welspun Living gained 5.68%, while Vardhman Textiles climbed 5.35%. Arvind also posted strong gains of 5.11%.
Other notable gainers included Lux Industries, up 4.69%, KPR Mill, which rose 3.98%, and Trident, which added 2.66%. Gokaldas Exports gained 2.49%, while Kitex Garments advanced 2.25%. Alok Industries moved up 2.12%, Jindal Worldwide gained 1.98%, and Pearl Global Industries rose 0.93%.
Market participants believe the temporary duty waiver could significantly improve raw material availability during the cotton off-season and help stabilise procurement costs for textile manufacturers. Lower cotton costs are also expected to support export competitiveness, particularly at a time when global demand for yarn and textile products remains strong.
The policy is viewed as a positive step for the textile and apparel sector, which has been seeking measures to address raw material cost pressures and strengthen India’s position in international markets.
Industry stakeholders expect the move to benefit the broader textile value chain, from spinning and weaving to garment manufacturing and exports, while helping maintain momentum in one of India’s largest employment-generating sectors.
