The finance ministry on Saturday said all customs duties on cotton imports will be waived from 1 June 2026 to 30 October 2026. The move is aimed at boosting cotton supplies for textile exporters amid strong global demand for yarn.
The government said the duty exemption will help increase the availability of cotton for the textile sector and lower input costs across the textile and apparel value chain.
According to the ministry, the decision is likely to benefit the overall textile industry, particularly small and medium enterprises, by ensuring better availability of cotton in the market.
Following the announcement, textile stocks witnessed broad-based buying. Indo Count Industries surged 10.45%, while Raymond Lifestyle jumped 7.23%. Welspun Living gained 5.68%, Vardhman Textiles rose 5.35%, and Arvind advanced 5.11%.
Among other gainers, Lux Industries climbed 4.69%, KPR Mill added 3.98%, Trident rose 2.66%, Gokaldas Exports gained 2.49%, 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 expect the temporary duty waiver to improve raw material availability and support margins for textile manufacturers catering to export markets.
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