Govt weighs export floor price for cotton yarn to ensure domestic supplies
Cotton yarn prices have surged around 60%, from about ₹250 per kg in early 2026 to nearly ₹400 per kg now, putting pressure on textile manufacturers, particularly those that use yarn to produce fabrics and garments, per the industry proposal submitted to the textiles ministry and reviewed by Mint.
The Indian government is considering a novel approach to safeguard domestic textile manufacturers by introducing a minimum export price (MEP) for cotton yarn, reported two sources familiar with the proposal. This move aims to maintain local availability of raw materials and curb the steep increase in costs faced by the textile industry.
Dhirendra Kumar, a seasoned policy reporter with over two decades of experience in economic and governance journalism, highlights the significance of this potential policy shift. Kumar, who has received prestigious awards for his work in uncovering critical policy issues, emphasizes the importance of this development in India's economic landscape.
Written by urgent.news from Live Mint's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
