Vardhman Textiles Share Price Jumps 9% as Govt Extends Cotton Import Duty Exemption

Indian textile stocks turned the spotlight on Thursday, with Vardhman Textiles share price rallying sharply after the government decided to extend the exemption of import duty on cotton until December 31, 2025. The stock surged as much as 9% to ₹423.20 apiece in intraday trade.

This move comes as a relief for the textile industry, which has been facing challenges due to high input costs and volatile raw material prices.

Market Performance

• Current Session: Vardhman Textiles' share price climbed up to ₹423.20, marking a 9% surge.
  
  
• 5-Day Trend: The stock gained nearly 2% in the last five sessions.
  
  
• 1-Month Trend: Despite the recent spike, shares are still down by 6.7% over the past month.
  
  

Government's Decision on Cotton Import Duty

The Centre's announcement has been one of the biggest tailwinds for the sector this week. The Finance Ministry confirmed that the duty exemption on cotton imports, which was first introduced on August 19, 2025, and initially valid till September 30, 2025, has now been extended until December 31, 2025.

Key Highlights:

• Original Duty: Raw cotton imports usually attract an 11% duty, which includes the agriculture infrastructure and development cess.
  
  
• First Exemption: Introduced on August 19, 2025.
  
  
• Extension Period: Now valid until December 31, 2025.
  
  
• Objective: Ensure smoother raw material supply and reduce cost pressures on textile mills.
  
  

By keeping cotton imports duty-free, the government aims to give Indian textile manufacturers access to global prices, enhancing competitiveness in both domestic and export markets.

Why It Matters for Textile Companies

Cotton is the backbone of the textile industry, and cost fluctuations directly hit profitability. With this exemption in place, mills and exporters can secure raw material more efficiently.

The timing is critical, as the industry has been under pressure from:

• Rising input costs.
  
  
• Global trade uncertainties.
  
  
• Volatile demand conditions.
  
  

This extension provides breathing space for manufacturers to stabilize operations and remain cost-competitive.

Vardhman Textiles Share Price – Key Takeaways

• Vardhman Textiles' share price jumped 9% to ₹423.20 after the government's move.
  
  
• The stock has gained 2% over the last five trading sessions but remains down 6.7% for the month.
  
  
• The extension of cotton duty exemption until December 31, 2025, is a direct positive for the textile sector.
  
  
• The move removes the 11% duty burden on raw cotton imports, keeping supply affordable for mills.
  
  

Summary

The government's decision to extend cotton import duty exemption till December 31, 2025, has turned sentiment positive for textile players. Vardhman Textiles shares were quick to react, surging up to 9% intraday. Although the stock has been volatile in the near term, the latest policy relief is expected to alleviate cost pressures and enhance industry competitiveness in the global market.

For now, Vardhman Textiles' share price remains one of the key stocks to watch in the textile sector, as policy-driven changes continue to shape its trajectory.