Apparel exporters across India have urged the Government to ban the cotton yarn export as the same has been forcing Indian apparel manufacturers to pay high price.
The Apparel Export Promotion Council (AEPC) has appealed to the Union Government to check volatility of yarn price that is now affecting the value chain. A. Sakthivel, Chairman, AEPC and President of Federation of Indian Export Organisations recently met Union Commerce and Industry Minister Piyush Goyal and raised this issue.
It was also suggested that if exporting units buy yarn from the domestic mills, it should be considered as fulfilling export obligation of yarn manufacturers. The Cotton Corporation of India (CCI) should supply 60 per cent of its cotton to domestic yarn manufacturers.
The Noida Apparel Export Cluster (NAEC) has sought a complete ban on the export of Indian cotton and yarn. Lalit Thukral, President, NAEC, has said the industry is already reeling under huge losses caused by the pandemic and the large-scale export of cotton and yarn has come as a double blow.
Out of India’s total cotton export, 40 per cent is exported to China only. As per official data, during the current cotton season (October 2020 to September 2021) as on April 2021, out of the total exports of 54.83 lakh cotton bales, 21.97 lakh bales were exported to China only.
During the same period, Bangladesh imported 22.09 lakh bales cotton from India. Together, China and Bangladesh has share of 80 per cent as far as cotton export from India is concerned. Both Bangladesh and China are the competitors of India in apparel export.
Also Read: India’s cotton export! 40% goes to China only
Nearly 75 per cent of the raw materials used in ‘Made in India’ apparels are cotton and the industry is currently facing an acute shortage of cotton yarn, which is hitting production, employment and export.
At the same time, the steep rise in the price of cotton (ranging from 30 per cent to 60 per cent), over the past six months has also led to an increase in the cost of production.
Increasing sea freight charges and container shortage are a matter of concern to exporters.
All these factors are making Indian exporters uncompetitive at international level.
Bharat Tex Special Report 2026 
