Textile stocks rallied sharply in Monday’s trade after the Ministry of Finance suspended the 11 per cent import duty on cotton from June 1 to October 31, offering major relief to the textile industry amid elevated raw material costs.
Shares of Indo Count Industries surged more than 13 per cent to a 52-week high of ₹353.90 on the NSE, while Vardhman Textiles rallied nearly 8 per cent to ₹622.
Gokaldas Exports shares zoomed over 6 per cent to ₹734.80 on the NSE, while Welspun Living gained 5 per cent to ₹146. Arvind Ltd shares also climbed more than 6 per cent to hit a fresh 52-week high of ₹502.80 on the NSE.
Other textile counters such as Ambika Cotton Mills, Page Industries, Raymond Lifestyle and Kilitch Garments also witnessed strong buying interest during the session.
The rally came after the Ministry of Finance, in a notification issued on May 30, announced that the existing 11 per cent import duty on cotton would not be levied between June 1 and October 31.
The temporary duty exemption is expected to reduce input costs across the textile and apparel sector, thereby providing targeted relief to manufacturers and consumers while also keeping the interests of domestic farmers in mind.
The Ministry said the measure is likely to have a positive impact on the performance of the domestic textile industry, particularly small and medium enterprises, by ensuring better availability of cotton in the market.
Market participants said the temporary suspension could improve profitability for spinning mills, garment exporters and home textile manufacturers by ensuring cheaper raw material availability during the peak procurement season.
The decision has also raised expectations of improved competitiveness for Indian textile exporters in global markets, especially amid demand recovery in key regions such as the US and Europe.
, saying it would support the sector at a crucial time. The Confederation of Indian Textile Industry said the temporary removal of the 11 per cent cotton import duty would help India’s MSME-dominated textile and apparel sector improve global competitiveness amid global headwinds.
The industry body added that the move comes at a time when India is targeting textile and apparel exports of $100 billion by 2030.