Shares of Raymond Ltd surged over 4% to ₹637.75 in early trade on Monday after the government temporarily removed the 11% customs duty on raw cotton imports till September 30. The move comes as a major relief to the textile and garment sector, which has been grappling with rising input costs and stiff competition in global markets.
The Finance Ministry, through the Central Board of Indirect Taxes and Customs (CBIC), notified the exemption, which covers both the basic customs duty and the Agriculture Infrastructure and Development Cess (AIDC) on raw cotton. The decision will remain in effect for 42 days, from August 19 to September 30.
The step is expected to provide immediate cost relief across the textile value chain — from yarn and fabric producers to garment makers. Industry body CITI (Confederation of Indian Textile Industry) welcomed the move, noting it will help domestic cotton prices align with international benchmarks and improve export competitiveness.
For Raymond, a diversified player in textiles, garments, and lifestyle products, the exemption is likely to support margins in the short term. Exporters like Raymond, who are dealing with the adverse impact of 50% tariffs on Indian textiles in the US, see this as a critical breather as they face rising pressure from global rivals such as Bangladesh, Vietnam, and China.
Analysts say while the relief is temporary, it signals government intent to support the sector at a crucial time. Exporters continue to hope for an extension of the duty removal and stronger trade negotiations with the US to secure long-term competitiveness.
Raymond’s gains were in line with a broader rally in textile stocks, with peers such as Welspun Living, Vardhman Textiles, Arvind, and Trident also trading higher on the back of the duty exemption announcement.
