Bullish Signal: Apparel Industry Seeks Cotton Import Duty Removal

Apparel industry representatives have met with Vice President C P Radhakrishnan to advocate for the removal of the 11% import duty on cotton. They highlighted a significant projected supply-demand gap of 45 lakh bales for the upcoming season, which is driving up input costs for domestic manufacturers.

This initiative is crucial for the Indian textile and apparel sector, which faces intense global competition. Removing the import duty would directly reduce raw material costs, enhancing the profitability and competitiveness of Indian manufacturers. It could also help stabilize domestic cotton prices, benefiting the entire value chain.

If the duty is removed, it would be a significant positive for textile and apparel companies like ARVIND, RAYMOND, PAGEIND, KPRMILL, and WELSPUNIND. Lower input costs would translate to improved operating margins and potentially higher earnings, making these stocks attractive. The broader textile sector would see a positive sentiment shift.

Traders should closely watch for any official announcements or policy changes from the government regarding the cotton import duty. Any indication of a removal or reduction would be a strong catalyst. Also, monitor global cotton price trends and the domestic supply situation for further cues on sector profitability.

• •Apparel industry representatives met Vice President C P Radhakrishnan.
• •They sought the removal of an 11% import duty on cotton.
• •The delegation highlighted a projected supply-demand gap of 45 lakh bales for the upcoming season.
• •The duty removal aims to mitigate rising input costs and protect domestic manufacturers.
• •Risk flag: Government may not agree to remove the duty due to farmer interests.