AEPC urges Commerce Minister to consider measures to regulate cotton yarn export
This is due to the sharp increase in yarn prices and the growing pressure on the competitiveness of India’s apparel export industry
The Apparel Export Promotion Council (AEPC) has called upon Union Commerce Minister Piyush Goyal to explore regulatory measures for cotton yarn exports, specifically focusing on 20s count and above. This request stems from a significant surge in yarn prices and mounting concerns over the competitiveness of India's apparel export sector.
The price of cotton yarn has surged by roughly 60%, climbing from around ₹250 per kg in early 2026 to approximately ₹400 per kg currently. This escalation is further exacerbated by escalating costs of other essential materials and fuel, as highlighted by AEPC Chairman A Sakthivel in a letter to the Minister. AEPC has additionally appealed for the involvement and assistance of Union Textiles Minister Giriraj Singh.
Moreover, the council notes that a large amount of cotton has shifted from farmers to traders, leading to hoarding and speculative tendencies in the market. The rise in exports of Indian cotton and yarn to apparel-producing nations like Bangladesh and Vietnam, following US restrictions on Chinese cotton under the Uyghur Forced Labour Prevention Act, has further intensified the pressure on raw material costs across the garment value chain.
Raw cotton currently costs about ₹275 per kg, while yarn made from cotton sells for around ₹325 per kg. In contrast, a kilogram of garments, after undergoing value addition, can be sold for between ₹800 and ₹1,200.
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