The Apparel Export Promotion Council (AEPC) has urged Union Commerce and Industry Minister Piyush Goyal to consider measures to regulate the export of cotton yarn, particularly yarn of 20s count and above, amid a sharp rise in domestic yarn prices and growing pressure on the competitiveness of India’s apparel export industry.
Cotton yarn prices have increased by around 60%, rising from approximately Rs 250 per kg in early 2026 to around Rs 400 per kg currently. The increase is adding to cost pressures across the apparel manufacturing value chain, along with higher prices of other raw materials and fuel, according to AEPC Chairman A Sakthivel.
The council has also sought the intervention and support of Union Textiles Minister Giriraj Singh to address the issue.
Raw cotton currently fetches around Rs 275 per kg, while cotton converted into yarn is priced at approximately Rs 325 per kg. In comparison, a kilogram of garments, after value addition, can generate between Rs 800 and Rs 1,200.
According to AEPC, a substantial quantity of cotton has moved from farmers to traders, contributing to stockpiling and speculative activity in the market. This has further tightened the availability of raw material for the domestic textile and apparel industry.
Sakthivel also pointed to an increase in exports of Indian cotton and cotton yarn to major apparel-producing countries such as Bangladesh and Vietnam. The rise has followed restrictions imposed by the US on the use of Chinese cotton under the Uyghur Forced Labour Prevention Act (UFLPA), increasing demand for alternative cotton supplies.
The council said the shift in sourcing has added to raw-material price pressures across the garment value chain.
