Textile stocks rally on import duty relief; Arvind up 6%, hits 52-week high

Shares of textile sector-related companies were trading higher on the first trading session of the week, rallying up to 6 per cent in Monday, June 1, intra-day trade, after the Ministry of Finance suspended import duty on cotton from June 1 to October 31. The move is expected to offer much-needed relief to the textile industry, with investors betting that the duty suspension will ease input cost pressures for manufacturers. 

Among individual stocks, Arvind stock surged 6.44 per cent to hit a 52-week high of ₹502.25 per share on the NSE. At 9:29 AM, the stock was trading at ₹493, up 4.48 per cent from its previous close of ₹471.85. 

 

Other textile counters also witnessed strong buying interest. Vardhman Textiles gained 6 per cent, followed by Nitin Spinners (5.53 per cent), Himatsingka Seide (5 per cent), and Gokaldas Exports (4 per cent). KPR Mill rose 2.2 per cent, while Kitex Garments advanced 2 per cent. Pearl Global Industries was also up 2 per cent, whereas Kewal Kiran Clothing traded largely flat. 

The broader market also remained positive, with the benchmark BSE Sensex trading at 75,028, up 252 points, or 0.34 per cent.  Read Stock Market Updates Today LIVE

Cotton import duty suspended till Oct 31 to ease supply, cut costs?

The Ministry of Finance has suspended import duty on cotton from June 1 to October 31. In a notification issued on May 30, the Central Government said all customs duties on cotton imports would be exempted from June 1, 2026, to October 31, 2026. As a result, the 11 per cent duty will not be levied during this period. 

"To augment availability of cotton for the Indian textile sector, the Central Government has temporarily exempted all customs duties on import of cotton from 1st June, 2026 till 31st October, 2026," the Ministry of Finance said in a release. 

???? Central Government temporarily exempts all customs duties on import of cotton from 1st June, 2026 till 31st October, 2026  Read more ➡️ https://t.co/w0WvazPLLE pic.twitter.com/gmoey7Xe37

— Ministry of Finance (@FinMinIndia) May 30, 2026

According to the notification, 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. 

"Overall, the measure is anticipated to have a positive impact on the performance of the domestic textile industry, especially the small and medium enterprises, by ensuring better availability of cotton in the market," it added.  READ | Wockhardt soars 19%, zooms 75% in 1 month; what's driving pharma stock? 

Cotton duty relief to ease input costs, boost margins for textile exporters

The government's decision to temporarily remove the 11 per cent customs duty and AIDC on cotton imports, Hariprasad K, a Sebi-registered research analyst and founder of Livelong Wealth, said, is a significant positive for India's textile sector. The move directly addresses the domestic cotton supply deficit while lowering raw material costs for manufacturers at a time when cotton accounts for nearly 65-70 per cent of production expenses. 

From a market perspective, the biggest beneficiaries, he believes, are likely to be spinning mills, textile manufacturers, and garment exporters. Access to cheaper imported cotton can expand operating margins, improve export competitiveness, and support earnings growth over the coming quarters. 

"The timing of the exemption is particularly important. With domestic cotton arrivals remaining limited until the next harvest season, the policy helps bridge the supply gap without materially disrupting farmer realizations. It also allows Indian exporters to compete more effectively against manufacturing hubs such as Bangladesh and Vietnam, where access to lower-cost raw materials has often been an advantage," said Hariprasad. 

According to him, listed players with established global sourcing networks and stronger balance sheets are expected to benefit the most, as they can quickly capitalize on lower input costs and improve profitability.  ===================================== 

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