India Apparel Exporters Urge Cotton Yarn Export Controls
By Business Desk
India’s apparel exporters face a crisis as cotton yarn prices skyrocket 60%. AEPC calls for export regulations to maintain competitiveness.
The Apparel Export Promotion Council (AEPC) has urged Commerce Minister Piyush Goyal to implement regulations on cotton yarn exports. This appeal follows a significant 60% surge in cotton yarn prices since early 2026, severely impacting the competitiveness of India’s apparel export industry.
Key Price Movement
- Cotton yarn prices increased by 60%.
- Price per kg rose from Rs 250 to Rs 400.
- This surge has been observed since early 2026.
The sharp increase in cotton yarn costs is directly attributed to a confluence of supply-side constraints and limited stock availability. Speculative practices within the market have further exacerbated these price pressures, according to the AEPC.
Global Demand Shifts
A. Sakthivel, Chairman of AEPC, highlighted that increased exports of Indian cotton and yarn are contributing to the domestic shortage. These heightened exports are primarily directed towards countries like Bangladesh and Vietnam, a trend spurred by recent US restrictions on Chinese cotton.
The council emphasized the substantial difference in economic contribution between raw materials and finished goods. AEPC argues that finished garments offer significantly greater value addition and employment potential compared to unprocessed cotton or yarn exports.
Proposed Export Controls
To mitigate the adverse effects on the apparel sector, the AEPC is pushing for specific measures to control cotton yarn exports. Their focus is particularly on yarn counts of 20s and above, aiming to safeguard domestic supply for garment manufacturing.