India’s apparel exporters have urged Commerce Minister Piyush Goyal to introduce measures to regulate cotton yarn exports, citing a sharp rise in yarn prices and growing pressure on the competitiveness of the country’s garment industry.
The Apparel Export Promotion Council (AEPC) said limited cotton stocks, lower arrivals and increased dependence on Cotton Corporation of India auctions have contributed to supply constraints. It also flagged the movement of cotton from farmers to traders, which it said has encouraged hoarding and speculative activity.
According to AEPC Chairman A. Sakthivel, cotton yarn prices have climbed around 60%, from about ₹250 per kg at the beginning of 2026 to nearly ₹400 per kg currently. The rise in raw-material and fuel costs is adding further pressure on apparel manufacturers and exporters.
AEPC has specifically called for measures to regulate exports of 20-count and above cotton yarn, arguing that increased shipments to apparel-producing markets such as Bangladesh and Vietnam are tightening domestic supplies.
The exporters warned that higher input costs could weaken India’s competitiveness just as new opportunities are emerging in markets covered by free trade agreements, including the UK and New Zealand. They also stressed that exporting finished garments generates greater value addition and employment than exporting raw cotton or yarn.