The cost of cotton and synthetic fibres is higher in India than it is elsewhere, which is hurting yarn makers and lowering the competitiveness of Indian textile products on the world market. In July, domestic fibre costs are 24–48 per cent higher than international rates, having remained high in the June quarter.
In the June quarter, cotton fibre prices at the MCX continued to be higher than those on the Intercontinental Exchange (ICE). The price difference was 13 per cent in May and increased to 15 per cent and 22 per cent in May and June, respectively. By the middle of July, there was a twenty-four percent price gap between MCX and ICE cotton.
In a similar vein, in April, May, and June, the prices of polyester staple fibre in India were 32.7 percent higher than those in China. Prices for viscose staple fibre increased by 11.8 per cent in April, 15.8 per cent in May, and 19 per cent in June. PSF prices had increased by 45.5 per cent by the third week of July, while VSF prices showed a 20.5 per cent difference in price.
Industry sources claim that the Bureau of Indian Standards’ Quality Control Order prevents Chinese fibre from entering the market without receiving quality approval. This has led to a shortage, which has raised costs on the local market.
While this is hurting India’s ability to compete internationally, local producers are also at a disadvantage because rival countries like Bangladesh, Vietnam, Sri Lanka, and Pakistan are able to take advantage of advantageous duty arrangements in important markets such as Europe.
Bharat Tex Special Report 2026 
