Apparel Exporters Seek Regulation on Cotton Yarn Exports
Apparel exporters in India have asked Commerce Minister Piyush Goyal to regulate cotton yarn exports. They are concerned about rising prices that threaten the industry's competitiveness. The Apparel Export Promotion Council (AEPC) reported that cotton yarn prices have jumped about 60%. Prices rose from ₹250 per kg in early 2026 to ₹400 per kg now. This increase is due to supply-side issues, including limited stock and reduced arrivals. Mills have had to rely more on auctions by the Cotton Corporation of India (CCI).
AEPC Chairman A Sakthivel pointed out that the movement of cotton from farmers to traders has led to hoarding and speculation. This has worsened the price increase. He said, "AEPC has urged the minister to consider suitable measures to regulate the export of cotton yarn, particularly 20s count and above, in view of the sharp increase in yarn prices and the growing pressure on the competitiveness of India's apparel export industry."
Sakthivel also mentioned that rising costs of other raw materials and fuel are adding to the problem. This further strains the apparel manufacturing value chain. The increase in Indian cotton and yarn exports to countries like Bangladesh and Vietnam has also contributed to rising prices. This follows U.S. restrictions on Chinese cotton under the Uyghur Forced Labor Prevention Act. Higher manufacturing costs are hurting the competitiveness of Indian apparel exporters. This is especially true as opportunities grow in international markets, including new free trade agreement markets like the UK and New Zealand.
The rising cotton yarn prices could lead to higher costs for apparel manufacturers. This will impact margins and competitiveness in export markets. Investors will be watching for any regulatory measures from the government that may stabilize prices and support the apparel sector.
Based on reporting by: livemint.com, moneycontrol.com