Vardhman Textiles Ltd.VTL₹450.20 +13.03%

The Central Government has extended the exemption of import duty on cotton (HS 5201) until December 31, 2025, in a bid to ease raw material costs for the domestic textile sector and strengthen India’s export competitiveness.

The waiver, which came into effect on August 19, 2025, was initially valid until September 30. With this extension, the duty-free window will now remain open for an additional three months. Normally, raw cotton imports attract an 11% levy, including the agriculture infrastructure and development cess. By suspending this duty, the government aims to ensure better availability of cotton for textile mills at globally competitive prices, especially at a time when the industry has been under pressure from high input costs.

The announcement triggered a sharp rally, with Vardhman Textiles Ltd. surging to an intraday high of ₹459.90 apiece. 

According to the Ministry of Finance, the decision is expected to support both domestic spinners and exporters, helping them withstand recent global headwinds, including higher tariffs imposed by the United States on Indian goods such as garments and jewellery. The official notification formalizing the extension is expected shortly.

The move underscores the government’s continued push to safeguard the textile industry, while also bolstering its export prospects amid a challenging global trade environment.

Note: The stock price mentioned is as of 3:30 pm.

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