COTTON STOCKS RALLY AS CENTER SCRAPS IMPORT DUTY ON RAW COTTON

Shares of cotton-related companies such as

and rallied today after the Centre removed the 11% import duty on raw cotton till September 30. This decision offers temporary relief to the textile and garment sector which has been facing challenges amid concerns related to the additional tariffs imposed by Donald Trump. India has stood firm on sensitive sectors such as agriculture and dairy during bilateral trade talks. By easing import duty on cotton, the government is signaling some flexibility to the textile industry without giving up its core red lines. This move also reflects India’s domestic supply concerns. Cotton availability in the local market has been tight, with industry associations repeatedly warning about the risk of higher yarn prices and downstream cost pressures in textiles. By allowing duty-free imports, the government aims to ease raw material costs ahead of the festival season, a period when demand for garments typically rises. This will improve the operating margins of textile and garment factories.