Indian apparel exporters are urging the government to consider regulating cotton yarn exports as a sharp rise in yarn prices puts growing pressure on garment manufacturers and threatens their competitiveness in international markets.
Cotton yarn prices in India have climbed by around 60% since the beginning of 2026, rising from approximately INR 250 per kg to nearly INR 400 per kg, according to the Apparel Export Promotion Council (AEPC).
AEPC Chairman A. Sakthivel has called on Commerce Minister Piyush Goyal to consider measures to regulate exports of cotton yarn, particularly 20s count and above, amid concerns over limited cotton availability, reduced market arrivals and speculative stockholding.
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Why Cotton Yarn Prices Are Rising in India
The industry says cotton mills are increasingly dependent on Cotton Corporation of India (CCI) auctions as supplies available from ginners tighten. At the same time, higher fuel and other input costs are adding further pressure on garment production costs.
Another factor influencing the market is growing demand for Indian cotton and cotton yarn from major apparel-producing countries including Bangladesh and Vietnam. AEPC linked part of this demand to US restrictions on the use of Chinese cotton under the Uyghur Forced Labor Prevention Act (UFLPA).
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Higher Costs Challenge India’s Apparel Exporters
The price increase comes at a sensitive time for India’s apparel industry. Exporters see new opportunities emerging through trade agreements with markets including the UK and New Zealand, but higher domestic manufacturing costs could make it more difficult for Indian suppliers to compete.
AEPC also highlighted the economic advantage of exporting finished garments rather than lower-value raw materials. According to the council, raw cotton generates around INR 275 per kg, yarn approximately INR 325 per kg, while finished garments can achieve a value of between INR 800 and INR 1,200 per kg after value addition.Balancing Yarn Exports with Domestic Manufacturing
The debate now centres on how India can balance cotton and yarn exports with the raw material needs of its domestic apparel manufacturing industry.
