Textile Stocks Surge on FM's announcement of a five-year cotton mission

1 Feb 2025 , 12:23 PM

After Finance Minister Nirmala Sitharaman declared a five-year objective for cotton farmers to increase productivity, shares of textile stocks shot up to 9% during Saturday’s special Budget session.

Ambika Cotton Mills surged up to 9% to trade at Rs 1,630 after the announcement, while KPR Mills saw a nearly 4% increase. In contrast, Arvind and Vardhman Textiles had increases of 4% and 2%, respectively.

In her record seventh Budget address, the finance minister stated, “This will help raise farmers’ incomes and ensure a steady supply of quality cotton to rejuvenate India’s traditional textile sector, in line with our integrated 5F vision for the textile sector.”

In order to improve quality cotton, the mission will concentrate on cotton productivity that will promote extra-long staple cotton types.

Furthermore, Sitharman declared that 7.7 crore farmers would be able to obtain short-term loans through Kisan Credit Cards. For loans obtained through KCC, the credit cap under the modified interest subvention plan will rise from Rs 3 lakh to Rs 5 lakh.

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