Apparel Exporters Ask Piyush Goyal to Check Cotton Yarn Exports as Prices Jump 60%

Cotton yarn prices have moved up sharply this year, and apparel exporters are asking the government to step in. The Apparel Export Promotion Council (AEPC) has urged Commerce Minister Piyush Goyal to consider measures to regulate cotton yarn exports. 

AEPC Chairman A. Sakthivel said prices of raw cotton and yarn have been rising because of supply-side issues. Yarn prices have gone from about ₹250 per kg in early 2026 to around ₹400 per kg now. 

Cotton Supply Is Also Tight 

AEPC said ginners are holding limited stocks and cotton arrivals have come down. This has left mills depending more on Cotton Corporation of India (CCI) auctions for supplies. 

The council has also raised the issue of cotton moving from farmers to traders. It said this has added to concerns over hoarding and speculative activity. 

AEPC has asked the government to look at cotton yarn exports, particularly 20s count and above, given the rise in domestic yarn prices. 

Export Demand Adds to the Pressure 

Indian cotton and cotton yarn exports to countries such as Bangladesh and Vietnam have increased, according to AEPC. The council linked this partly to US restrictions on Chinese cotton under the Uyghur Forced Labor Prevention Act. 

AEPC said this has put more pressure on raw material prices. At the same time, apparel makers are dealing with higher fuel and other input costs. 

The concern comes as Indian exporters are also seeing opportunities in newer FTA markets, including the UK and New Zealand. AEPC said higher manufacturing costs could make it harder for them to compete in these markets. 

Finished Garments Bring Higher Value 

AEPC has also pointed to the difference in value between raw cotton, yarn and finished clothing. 

Raw cotton is currently worth around ₹275 per kg, while yarn fetches about ₹325 per kg. A kilogram of finished garments can bring ₹800 to ₹1,200 after value addition. 

The council highlighted this gap while stressing the higher value realisation and employment potential of finished garment exports. 

Read More: India Signs Agreement With US To Procure Javelin Anti-Tank Missile System for Army! 

Conclusion 

AEPC has asked the government to consider action on cotton yarn exports as prices continue to rise. The exporters' body is seeking measures that can ease pressure on yarn costs and help Indian apparel exporters remain competitive. 

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