New Delhi: Indian apparel exporters have urged Commerce Minister Piyush Goyal to consider regulating cotton yarn exports as a sharp increase in prices threatens the competitiveness of the garment industry.
Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said rising raw cotton and yarn prices, driven by supply constraints, are putting increasing pressure on apparel manufacturers.
Cotton Yarn Prices Jump 60%
Cotton yarn prices have surged around 60 per cent, climbing from nearly ₹250 per kg in early 2026 to about ₹400 per kg currently.
Sakthivel said limited cotton stocks with ginners and lower market arrivals have forced spinning mills to depend increasingly on Cotton Corporation of India (CCI) auctions for supplies.
A substantial quantity of cotton has also moved from farmers to traders, contributing to hoarding and speculative activity, according to AEPC.
The council has asked the government to consider suitable measures to regulate exports of cotton yarn, particularly counts of 20s and above.
Rising Costs Hit Garment Makers
Apart from cotton yarn, increasing fuel and other raw material costs are adding to the financial pressure on apparel manufacturers.
AEPC also pointed to rising exports of Indian cotton and cotton yarn to major apparel-producing countries such as Bangladesh and Vietnam.
Demand has increased following US restrictions on the use of Chinese cotton under the Uyghur Forced Labor Prevention Act. This has further tightened supplies and pushed up input costs across India’s garment value chain.
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Export Opportunities At Risk
AEPC warned that higher manufacturing costs could weaken Indian exporters’ competitiveness when fresh opportunities are opening in overseas markets, including new free trade agreement markets such as the UK and New Zealand.
Sakthivel also highlighted the greater value and employment generated by exporting finished garments instead of raw materials.
Raw cotton fetches about ₹275 per kg, while converting it into yarn raises the value to around ₹325 per kg.
In contrast, one kilogram of finished garments can fetch between ₹800 and ₹1,200 after value addition, offering significantly greater export earnings and employment potential.
