AEPC Urges Government to Regulate Cotton Yarn Exports to Ease Price Pressure on Apparel Industry
Council seeks measures on 20s count and above cotton yarn exports, citing rising input costs and impact on garment export competitiveness
The Apparel Export Promotion Council (AEPC) has requested the Government to consider suitable measures to regulate exports of cotton yarn, particularly 20s count and above, following a sharp rise in yarn prices. The Council said increasing raw material costs are affecting the competitiveness of India's apparel export sector and sought intervention from the Ministries of Commerce & Industry and Textiles.
AEPC Writes to Commerce and Textiles Ministers
AEPC urged Hon’ble Union Minister of Commerce and Industry Shri Piyush Goyal to consider measures to regulate exports of 20s count and above cotton yarn. The Council also sought the support of Hon’ble Union Minister of Textiles Shri Giriraj Singh on the issue.
In a letter addressed to the Commerce Minister, AEPC Chairman Dr. A. Sakthivel thanked the Government for its continued support and industry-focused initiatives while highlighting concerns over rising cotton and cotton yarn prices.
Supply Constraints Driving Cotton and Yarn Prices
According to the Council, prices of raw cotton and cotton yarn have continued to rise because of supply-side constraints. The letter states that limited stock availability with ginners and lower market arrivals have resulted in spinning mills depending more heavily on CCI auctions.
It further notes that a significant quantity of cotton has shifted from farmers to traders, contributing to hoarding and speculative market practices.
AEPC said cotton yarn prices have increased by around 60%, rising from approximately Rs 250 per kg in early 2026 to around Rs 400 per kg currently. The Council added that increasing costs of other raw materials and fuel are placing additional pressure on apparel manufacturers.
Export Demand Adding to Domestic Price Pressure
The Council also pointed to higher exports of Indian cotton and cotton yarn to apparel-producing countries including Bangladesh and Vietnam following restrictions imposed by the United States on the use of Chinese cotton under the Uyghur Forced Labor Prevention Act (UFLPA).
According to AEPC, this increase in exports has added further pressure on domestic raw material prices throughout the garment value chain.
As most apparel exporters source fabric from the domestic market, higher cotton and yarn prices are translating into increased fabric costs and higher apparel manufacturing expenses. AEPC said this is reducing the competitiveness of Indian exporters at a time when export opportunities are expanding, particularly in Free Trade Agreement (FTA) markets such as the United Kingdom and New Zealand.
Council Highlights Higher Value from Garment Exports
AEPC emphasised that exports of finished garments generate significantly greater value addition and employment compared with exports of raw cotton or cotton yarn.
According to the Council:
- Raw cotton fetches approximately Rs 275 per kg
- Cotton converted into yarn fetches around Rs 325 per kg
- Finished garments can fetch between Rs 800 and Rs 1,200 per kg after value addition
The letter also referred to Hon’ble Prime Minister Shri Narendra Modi's emphasis on promoting exports of value-added products such as garments instead of raw materials due to their higher contribution to employment and economic value.
AEPC Calls for Immediate Government Intervention
Dr. A. Sakthivel said:
"We are grateful for the continued support and guidance of the Hon’ble Minister and the Ministry of Textiles. At this critical juncture, ensuring adequate availability of cotton yarn at competitive prices will help our apparel exporters remain competitive and take full advantage of the emerging opportunities in global markets."
AEPC has requested the Government to consider suitable measures to regulate exports of 20s count and above cotton yarn and stabilise domestic prices to ensure adequate availability for apparel manufacturing and exporting units.
The Council expressed confidence that timely intervention by the Government would provide relief to the apparel export industry and strengthen India's position in value-added apparel exports.