Daijiworld Media Network - New Delhi
New Delhi, Aug 29: Apparel exporters have urged Commerce Minister Piyush Goyal to consider measures to regulate cotton yarn exports, citing a sharp rise in yarn prices and growing pressure on the competitiveness of India's garment industry.
Apparel Export Promotion Council (AEPC) Chairman A Sakthivel, in a communication to Goyal on Saturday, said rising prices of raw cotton and cotton yarn were being driven by supply-side constraints.
He said limited stocks with ginners and reduced cotton arrivals had forced mills to increasingly depend on auctions conducted by the Cotton Corporation of India (CCI).
A substantial quantity of cotton has also moved from farmers to traders, Sakthivel said, contributing to hoarding and speculative activity in the market.
"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," he said.
Cotton yarn prices have risen by around 60 per cent, from approximately Rs 250 per kg in early 2026 to around Rs 400 per kg currently, putting additional pressure on the apparel manufacturing value chain.
The increase in the cost of other raw materials and fuel has further aggravated the situation, according to the AEPC.
Sakthivel also pointed to a rise in exports of Indian cotton and cotton yarn to apparel-producing countries such as Bangladesh and Vietnam following US restrictions on the use of Chinese cotton under the Uyghur Forced Labor Prevention Act (UFLPA).
"This has added to the pressure on raw material prices across the garment value chain," he said.
The AEPC said higher manufacturing costs were affecting the competitiveness of Indian apparel exporters at a time when opportunities were expanding in international markets, particularly in new free trade agreement (FTA) markets such as the UK and New Zealand.
Sakthivel highlighted the greater value realisation and employment potential associated with exporting finished garments compared with raw cotton and yarn.
According to the letter, raw cotton fetches around Rs 275 per kg, while cotton converted into yarn fetches approximately Rs 325 per kg. In contrast, one kilogram of finished garments can generate between Rs 800 and Rs 1,200 after value addition.
The exporters have therefore sought government intervention to ease raw material pressures and protect the competitiveness of India's apparel export sector.