Indo Count, Gokaldas, Other Textile Stocks Rally Up to 11% As Cotton Import Duty Scrapped for Five Months

Mumbai, June 1:Textile stocks surged on Monday after the government removed customs duties on cotton imports for five months, a move expected to ease raw material costs and improve cotton availability for the domestic textile and apparel industry.

Shares of Indo Count Industries, Gokaldas Exports, KPR Mill and several other textile companies rose between 2% and 11% as investors cheered the policy announcement. The duty exemption is aimed at supporting manufacturers and exporters grappling with elevated input costs and supply constraints.

Indo Count Industries share price rose 10.6% at Rs 345 while Gokaldas Exports share price increased 2.6% at Rs 710. KPR Mill share price rose 4% at Rs 1,005.

Duty Waiver to Boost Cotton Availability

The Centre has temporarily exempted all customs duties on cotton imports from June 1 until October 30, 2026. The move removes both the basic customs duty and the Agriculture Infrastructure and Development Cess (AIDC), which together had imposed an effective 11% levy on imported cotton.

Indo Count Industries led the textile pack jumping the most after policy announcement. Source: NSE

The government said the decision was taken to improve cotton availability for the textile sector and help manufacturers manage rising input costs. The exemption is also expected to support smoother production cycles across the textile value chain, particularly for exporters facing strong global demand.

Exporters, SMEs Seen as Key Beneficiaries

Gokaldas Exports rose after duty exemption on cotton imports aimed at supporting manufacturers and exporters grappling with elevated input costs and supply constraints. Source: NSE

Industry bodies welcomed the decision, saying it would provide relief to textile manufacturers, especially small and medium enterprises that have been struggling with elevated cotton and yarn prices.

The Apparel Export Promotion Council (AEPC) said the measure would augment cotton availability and provide much-needed support to the textile and apparel value chain. Industry participants expect lower raw material costs to help improve margins and enhance the competitiveness of Indian exporters in global markets.

Analysts noted that companies with significant exposure to home textiles, garments and cotton-based products are likely to be among the biggest beneficiaries of the duty waiver, which could help offset pressure from volatile commodity prices.

Sector Sentiment Improves

The announcement comes at a time when textile companies have been seeking policy support to tackle input cost pressures and maintain export competitiveness.

While domestic cotton supplies remain adequate, industry executives have argued that duty-free imports would help ensure access to contamination-free cotton from global markets, including Australia, Brazil and the United States. Analysts said the measure could support sector profitability over the near term, though future demand trends and global trade conditions will remain important factors for the industry’s outlook.

Source:

• https://www.nseindia.com/get-quote/equity/ICIL/Indo-Count-Industries-Limited
• https://www.nseindia.com/get-quote/equity/GOKEX/Gokaldas-Exports-Limited
• https://www.nseindia.com/get-quote/equity/KPRMILL/K.P.R.-Mill-Limited