The Apparel Export Promotion Council (AEPC) has urged Union Minister of Commerce and Industry Piyush Goyal to consider taking suitable measures to regulate the export of cotton yarn, particularly of 20s count and above.
This is due to the sharp increase in yarn prices and the growing pressure on the competitiveness of India’s apparel export industry.
Cotton yarn prices have increased by around 60 per cent, from approximately ₹250 per kg in early 2026, to around ₹400 per kg now, further increasing pressure on the apparel manufacturing value chain. Rising costs of other raw materials and fuel are also aggravating the situation, said the council’s Chairman A Sakthivel in a letter to the Minister.
The council has also sought the intervention and support of Union Minister of Textiles Giriraj Singh. The council also highlights that a substantial quantity of cotton has moved from farmers to traders, contributing to hoarding and speculative practices in the market.
US restrictions
Sakthivel also highlighted the increase in exports of Indian cotton and cotton yarn to apparel-producing countries such as Bangladesh and Vietnam, following restrictions by the US on the use of Chinese cotton under the Uyghur Forced Labour Prevention Act. This has added to the pressure on raw material prices across the garment value chain.
Raw cotton fetches approximately ₹275 per kg, while cotton converted into yarn fetches around ₹325 per kg. In comparison, a kilogram of garments, after value addition, can fetch between ₹800 and ₹1,200.