Cotton Import Duty Exempted: Relief for India's Textile and Yarn Industry

Cotton Import Duty Exempted: Relief for India's Textile and Yarn Industry​

Mumbai, June 1, 2026: The Indian textile industry has received a significant boost as the Union Government has exempted raw cotton imports from all customs duty and the Agriculture Infrastructure and Development Cess (AIDC). This relief measure is effective from June 1 through October 31, 2026, addressing a structural cost barrier that previously created disadvantages for domestic manufacturers.

The textile and apparel sector is crucial to the nation's economy, contributing 2.3% to the GDP, 13% to industrial production, and 12% to total exports, while employing an estimated 50 million workers. Industry observers note that the duty exemption is expected to reduce input costs across the value chain, improve cotton availability, and thereby strengthening the competitiveness of Indian textile exports, particularly through emerging Free Trade Agreements.

For integrated yarn manufacturers like Sanathan Textiles Limited, the waiver is poised to benefit operations significantly. The company, which operates across Polyester Filament Yarns, Cotton Yarns, and Technical Textiles, specializes in premium cotton combed compact yarns, catering to finer counts from 40s to 60s for high-value apparel and home textiles in both domestic and export markets. The duty reduction directly lowers landed raw material costs and enhances access to high-quality cotton, an area where Cotton Yarn manufacturing contributes significantly to the company's revenue.

Sanathan Textiles currently maintains an established Cotton Yarns manufacturing presence at its Silvassa facility. The company is further reinforcing its position in the premium cotton yarn segment by planning to expand its manufacturing footprint into Madhya Pradesh.

Over the past three decades, Sanathan Textiles has established itself as a leading yarn manufacturer with a diverse product portfolio. Its operations are strategically situated in Silvassa and Punjab. The company manages more than 3,200 yarn products and nearly 50,000 SKUs, serving over 7,000 customers and exporting to approximately 27 countries.

SANATHAN Stock Price Movement​

As of 11:51 AM, Sanathan Textiles Limited shares are rallying, gaining 1.11% to reach ₹410.2 in live trading. The stock is trading on a volume of 4,426 shares, keeping its movement contained within the day's range of ₹408.05 to ₹419.8.