Cotton and yarn prices have jumped sharply over the past six months, putting Indian apparel exporters under severe pressure. The AEPC chairman urges the government to regulate yarn exports to preserve sector competitiveness.

  • Cotton yarn prices up ~60% since January
  • Exporters locked into price contracts can’t renegotiate
  • Price gap with Bangladesh widening, orders shifting elsewhere

Rapid Rise in Cotton and Yarn Prices

Published on August 29, 2026, from Coimbatore, the report highlights a steep increase in cotton and yarn costs over the last six months, rattling the Indian apparel value chain. A. Sakthivel, chairman of the Apparel Export Promotion Council (AEPC), called for government regulation of yarn exports to protect the sector’s competitiveness.

Detailed Price Surge

Since January, cotton‑yarn prices have surged about 60%. Tiruppur garment exporter R. Sakthivel noted a rise of ₹7 per kg in March and over ₹17 per kg in August, amounting to a cumulative increase of ₹60‑₹70 per kg in six months. Exporters, bound by fixed-price contracts with foreign buyers, cannot adjust prices now.

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Impact on International Competition

Supply and production hiccups in Bangladesh have prompted many global apparel buyers to consider India as an alternative sourcing hub. However, the relentless rise in yarn costs has widened the price gap between India and Bangladesh, leading some orders to divert to other competing nations.

Millers’ Perspective

Textile mills argue that soaring cotton prices are the root cause of higher yarn rates. The widely used Shankar‑6 variety of cotton jumped 26% in the last six months, pressuring mills to pass on costs. MSME units, lacking bulk‑purchase power, find it increasingly difficult to secure yarn at stable rates.

Why This Matters

BozokMedia analysis shows that without price stabilization, India’s apparel export revenue could fall by as much as 15%, jeopardizing millions of jobs and foreign‑exchange earnings.

"Stabilizing cotton and yarn prices is crucial; otherwise, India’s garment export competitiveness will erode over the long term," says trade analyst Dr. Ravi Singh.
Did You Know?: India ranks among the top three global cotton producers, yet its yarn export share remains under 5% of global shipments.

Frequently Asked Questions

Q1: Can the government impose restrictions on yarn exports?

A: No formal restrictions exist yet, but the AEPC is pressing for regulatory measures.

Q2: When might cotton prices stabilize?

A: Stabilization depends on global market dynamics and seasonal harvests, likely within the next two years.