On the BSE, Gokaldas Exports rose 6% to Rs. 735 to its day high, while KPR Mill rose 4 percent to Rs. had reached 1,007. Shares of Vardhaman Textile rose 8% to Rs. 621, while Trident’s share rose 5% to Rs. It was 25.39. Welspun Corporation and Arvind Fashions trade mostly flat.
The duty waiver, which will last till October 30, is expected to reduce input costs for textile and apparel manufacturers, particularly benefiting small and medium enterprises.
The decision is positive for textile companies as it is expected to improve availability of raw materials and reduce input costs. The move could support margins for spinners, fabric manufacturers and apparel exporters, especially at a time when the industry is navigating cost pressures and competitive global markets. It is expected to provide targeted relief to the industry and consumers while balancing the interests of domestic cotton farmers.
The temporary exemption comes amid concerns about tight cotton supplies and rising prices, which have increased production costs for textile companies.
By allowing cheaper imports, the government aims to ease supply constraints and stabilize the market ahead of the peak festival and export season.
Industry representatives said domestic cotton prices have been among the most competitive globally, while supplies from the current crop are adequate, reducing the immediate need for large-scale imports.
Vinay Kotak, president of the Cotton Association of India, said that imports are not economically attractive at current price levels. Reuters.
However, Kotak noted that export-oriented mills requiring contamination-free cotton could import about 600,000 bales during the duty-free period. Industry officials added that any imports from countries with surplus cotton supplies, including Australia, Brazil, the United States and some African nations, are likely.
Market participants will also keep a close eye on the progress of monsoon. As cotton cultivation in India is mainly rain-fed, any adverse weather development can affect the new crop which is sown from June onwards. A weaker-than-expected monsoon or weather-related disturbances could affect production prospects and potentially increase the need for cotton imports in the coming months.
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