Apparel exporters urge Piyush Goyal to regulate cotton yarn exports amid price surge

New Delhi, Aug 29 (IANS) India’s apex apparel exporters body — Apparel Export Promotion Council (AEPC) — on Saturday urged Union Commerce and Industry Minister Piyush Goyal and Union Textiles Minister Giriraj Singh to take suitable measures to regulate cotton yarn exports amid a sharp rise in prices, saying competitive availability of the key raw material is essential for strengthening India’s value-added garment exports.

In a letter, AEPC Chairman Dr A. Sakthivel sought the intervention of the government particularly to regulate exports of cotton yarn of 20s count and above.

Sakthivel said India needs to prioritise value-added exports such as finished garments, which generate substantially higher value realisation and employment compared with exports of raw cotton and yarn.

Raw cotton fetches around Rs 275 per kg, while cotton converted into yarn fetches approximately Rs 325 per kg. In comparison, a kilogram of finished garments can fetch between Rs 800 and Rs 1,200 after value addition, he wrote in the letter.

The industry body attributed the increase in yarn prices to supply-side constraints, including limited stock availability with ginners and reduced cotton arrivals, which have led mills to increasingly depend on Cotton Corporation of India (CCI) auctions.

It also flagged rising exports of Indian cotton and cotton yarn to apparel-producing countries such as Bangladesh and Vietnam following US restrictions on the use of Chinese cotton under the Uyghur Forced Labor Prevention Act (UFLPA).

Apparel exporters, who largely procure fabric from the domestic market, said higher cotton and yarn prices are translating into increased fabric and garment manufacturing costs, affecting their competitiveness in global markets.

The industry has highlighted that the issue assumes significance as India gains greater access to international markets, including through new free trade agreement (FTA) markets such as the UK and New Zealand.

The apparel industry has therefore urged the government to ensure adequate availability of cotton yarn at competitive prices and consider measures to stabilise the market.

It said the move would help Indian apparel exporters remain competitive and take advantage of emerging opportunities in global markets while supporting greater domestic value addition and employment.

Cotton yarn prices have risen by around 60 per cent, from about Rs 250 per kg in early 2026 to nearly Rs 400 per kg currently, adding to cost pressures across the apparel manufacturing value chain.

–IANS

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