The Union Government’s decision to exempt raw cotton imports from customs duty and the Agriculture Infrastructure and Development Cess (AIDC) from June 1 to October 31, 2026 is expected to create fresh growth opportunities for integrated yarn manufacturers, with Sanathan Textiles Limited emerging as a key beneficiary.

The temporary exemption removes a critical cost burden for India’s spinning industry and is expected to improve access to high-quality cotton at competitive prices, enabling manufacturers to enhance operational efficiency and strengthen export competitiveness.

For Sanathan Textiles, the move is particularly significant as cotton yarn manufacturing forms an important part of its diversified business portfolio. The company has built a strong presence in premium cotton yarn manufacturing, specializing in combed compact yarns in finer counts ranging from 40s to 60s, catering to high-value apparel and home textile applications across domestic and international markets.