Cotton Yarn at ₹400/kg: Apparel Industry Calls for Government Intervention
What Happened
The Apparel Export Promotion Council (AEPC) has urged Commerce Minister Piyush Goyal to regulate exports of cotton yarn, especially 20s count and above, after yarn prices surged about 60%, from around ₹250 per kg in early 2026 to nearly ₹400 per kg. The industry says supply constraints, lower cotton arrivals, hoarding, and rising exports to countries such as Bangladesh and Vietnam are driving up costs.
Key Takeaways
Apparel exporters warn that rising cotton yarn prices are hurting India's competitiveness in global garment markets, including new FTA destinations such as the UK and New Zealand. AEPC argues that exporting value-added garments generates far greater value and employment than exporting raw cotton or yarn, and has asked the government to ensure adequate domestic yarn availability and stabilize prices.