Indian apparel exporters pressed Commerce Minister Piyush Goyal to weigh measures curbing cotton yarn exports as a means of reining in climbing yarn prices, given the toll this is taking on the industry’s competitiveness.
Apparel Export Promotion Council (AEPC) Chairman A Sakthivel, within a communication addressed to the minister, said mounting prices for raw cotton and cotton yarn are being driven by supply-side constraints.
Constrained stock levels amongst ginners together with reduced arrivals have left mills leaning more heavily on CCI (Cotton Corporation of India) auctions.
He noted a considerable quantity of cotton has shifted from farmers into the hands of traders, fuelling hoarding and speculative practices within the market.
“AEPC has pressed the minister to weigh suitable measures to regulate cotton yarn exports, particularly 20s count and above, given the sharp climb in yarn prices and the mounting pressure bearing down on the competitiveness of India’s apparel export sector,” Sakthivel said.
Cotton yarn prices have risen roughly 60%, climbing from approximately Rs 250 per kg during early 2026 to around Rs 400 per kg presently, piling further pressure onto the apparel manufacturing value chain.
Climbing costs tied to other raw materials and fuel are further compounding the situation, he said.
The letter additionally spotlights the rise in exports of Indian cotton and cotton yarn towards apparel-producing nations such as Bangladesh and Vietnam, following restrictions imposed by the US on the use of Chinese cotton under the Uyghur Forced Labor Prevention Act (UFLPA).
“This has compounded the pressure bearing down on raw material prices across the garment value chain,” he stated, adding that steeper apparel manufacturing costs are undermining the competitiveness of Indian apparel exporters at a moment when opportunities are widening across international markets, notably within fresh FTA markets such as the UK and New Zealand.
Sakthivel drew attention to the substantially greater value realisation and employment potential tied to exports of finished garments when set against raw cotton and yarn.
The letter notes that raw cotton fetches roughly Rs 275 per kg, whilst cotton converted into yarn fetches around Rs 325 per kg. By comparison, a kilogram of garments, following value addition, can fetch between Rs 800 and Rs 1,200.
