Budget 2025: Ambika Cotton, other textile stocks rally up to 9% as FM announces 5-year cotton mission

Shares of textiles stocks zoomed up to 9% in the special Budget session on Saturday after Finance Minister Nirmala Sitharaman announced a five-year mission for cotton farmers in order to improve productivity.

Following the announcement, Ambika Cotton Mills jumped as much as 9% to trade at Rs 1,630, followed by KPR Mills, up nearly 4%. Vardhman Textiles and Arvind, meanwhile, rallied 2% and 4%, respectively.

“Aligned with our integrated 5F vision for the textile sector, this will help increase the incomes of farmers and ensure a steady supply of quality cotton to rejuvenate India's traditional textile sector," the finance minister said in her record eighth Budget speech.


The mission will focus on cotton productivity that will improve extra-long staple cotton varieties, aiming to enhance quality cotton.

Additionally, Sitharman also announced that Kisan Credit Cards will facilitate short-term loans for 7.7 crore farmers. The loan limit under the modified interest subvention scheme will be increased from Rs 3 lakh to Rs 5 lakh for loans taken through KCC.