Apparel exporters urge India to regulate cotton yarn exports

The Apparel Export Promotion Council (AEPC) has urged India’s Union Commerce and Industry Minister, Piyush Goyal, and Textiles Minister, Giriraj Singh, to regulate cotton yarn exports to curb rising prices. AEPC Chairman Dr. A. Sakthivel noted that yarn prices have surged approximately 60 percent, rising from about Rs 250 per kg in early 2026 to around Rs 400 per kg.

The industry body attributed the price hike to supply-side constraints, including reduced cotton arrivals and limited stock availability among ginners, forcing mills to rely more heavily on Cotton Corporation of India (CCI) auctions. There are also concerns regarding hoarding and speculative practices as cotton moves from farmers to traders.

Exporters are specifically requesting regulation on the export of cotton yarn with a 20s count and above. They argue that prioritizing value-added exports, such as finished garments, is essential for higher value realization and employment. The council highlighted that increased costs for yarn and fabric are undermining the global competitiveness of Indian apparel, particularly as the country seeks to leverage new free trade agreements with markets like the UK and New Zealand.

Additionally, the AEPC noted that exports of Indian cotton and yarn to countries like Bangladesh and Vietnam have increased following US restrictions on Chinese cotton under the Uyghur Forced Labor Prevention Act (UFLPA), further straining domestic raw material availability.