Vardhman Textiles share price rallied as much as 9 per cent to ₹423.20 apiece in Thursday's trading session after the central government extended the exemption of import duty on cotton until December 31, 2025.
Vardhman Textiles shares have remained volatile in the near-term. The textile stock gained nearly 2 per cent in past five trading sessions, however, has descended over 6.70 per cent in a month.
Details on govt's date exemption
The Central Government's decision to extend the import duty exemption on cotton until December 31, is aimed at supporting the domestic textile industry and boosting exports.
" "To augment availability of cotton for the Indian textile sector, the Central Government had temporarily exempted the import duty on cotton from 19th August 2025 till 30th September 2025. In order to support exporters further, the Central Government has decided to extend the import duty exemption on cotton (HS 5201) from 30th September 2025 till 31st December 2025," said Ministry of Finance in a release.
The duty waiver, which was introduced on August 19, 2025, and was originally set to expire on September 30, 2025, has now been extended. With this new decision, the exemption on raw cotton imports (HS 5201) will continue for another three months, until December 31, 2025.
The government has decided to extend the exemption on cotton import duty to ensure sufficient supply for the textile industry, which has been grappling with high input costs in recent months. An official notification regarding the extension will be released soon.
Ordinarily, raw cotton imports attract an 11 per cent duty, including the agriculture infrastructure and development cess. The suspension aims to ease supply challenges and allow Indian textile mills to source raw materials at globally competitive prices.
This move also comes against the backdrop of U.S. President Donald Trump's decision to double tariffs on imports from India, raising duties on goods such as garments and jewellery to as high as 50 per cent.
(With inputs from agencies)
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