Vardhman Textiles, Welspun Living, KPR Mill Rally Up To 9% As Centre Waives Cotton Import Duty Till October

Textile stocks are seeing strong buying interest on Monday after the Centre announced a temporary waiver of customs duties on cotton imports, which is expected to reduce raw material costs and improve the competitiveness of India's textile industry.

Shares of textile companies such as Vardhman Textiles, Welspun Living, Ambika Cotton Mills, Raymond Lifestyle, Kitex Garments and Gokaldas Exports rallied sharply after the Finance Ministry notified a complete exemption on cotton import duties from June 1 to October 30, 2026.
The government's decision removes the existing 11% customs duty and Agriculture Infrastructure and Development Cess (AIDC) on cotton imports under HSN code 5201, providing relief to textile manufacturers struggling with rising input costs and global trade challenges.

Textile Stocks Today: Vardhman Textiles, Ambika Cotton Mills Among Top Gainers

Investor sentiment turned positive across the textile sector after the announcement. Several leading textile counters opened in green, at the time of writing, among the top performers, Vardhman Textiles gained around 6.8% to trade at Rs. 616.50, while KPR Mill rose 3.7% to Rs. 1,001.85. Welspun Living advanced nearly 4% to Rs. 143.47, and Arvind Ltd. climbed more than 4% to Rs. 493.20. Export-focused player Gokaldas Exports also moved higher by around 3.7% to Rs. 718.

Other textile and apparel companies traded in the positive zone as well. Page Industries traded near Rs. 38,030, LMW gained nearly 1%, Trident rose over 4%, Indo Count Industries added close to 4%, while Raymond Lifestyle surged around 4%. Stocks such as Pearl Global Industries, PDS, and Alok Industries also registered gains during the session.

Why Has The Government Removed Cotton Import Duty?

Currently, India's textile industry is facing multiple challenges, including high cotton prices, supply concerns and pressure from international competitors.

According to reports, the 11% import duty had made imported cotton much more expensive for domestic manufacturers. Countries such as Bangladesh and Vietnam enjoy duty-free access to imported cotton, giving them a cost advantage in global textile markets.
The temporary duty waiver is expected to increase cotton availability during the off-season and help Indian textile exporters remain competitive.

How Will Textile Companies Benefit?

The removal of import duties is expected to benefit the entire textile value chain, from spinning mills and fabric manufacturers to garment exporters and home textile producers.

Cheaper imported cotton could reduce raw material expenses for yarn manufacturers, helping them improve profitability and potentially lower yarn prices. Fabric makers and apparel exporters may also see cost savings, enabling them to compete more effectively in global markets.
Industry experts believe the move could particularly benefit export-oriented companies that rely heavily on cotton-based products.