AEPC seeks curbs on cotton-yarn exports as prices rise about 60%

India’s Apparel Export Promotion Council has urged the Commerce Ministry to regulate cotton-yarn exports, arguing that higher shipments, hoarding concerns and rising input costs are squeezing the domestic apparel manufacturing and export value chain.

— Source publishedFri, 28 Aug, 2026, 21:10 IST·First seen Fri, 28 Aug, 2026, 21:13 IST·Source BL · Consumer & Economy

What happened

Apparel Export Promotion Council (AEPC) · AEPC has asked the Commerce Ministry to regulate cotton-yarn exports as a 60% price rise raises costs for India’s

Key facts

  • Cotton yarn prices rose about 60%, from approximately ₹250/kg in early 2026 to around ₹400/kg currently.
  • Raw cotton fetches approximately ₹275/kg; converted yarn approximately ₹325/kg.
  • A kilogram of value-added garments can fetch ₹800-₹1,200.

Why this matters

Strategic buyers should prioritize targets or partnerships with captive yarn access, integrated textile capacity or diversified fiber inputs to reduce exposure to cotton-yarn supply shocks.

What to watch

  • Commerce Ministry announcement of an inter-ministerial review, export-registration requirement, minimum export price, duty, quota, or other cotton-yarn shipment restriction.
  • Weekly or monthly cotton-yarn price movement relative to the roughly ₹400/kg level, especially whether prices remain above ₹350/kg for several weeks.
  • Cotton arrivals, domestic crop estimates, Cotton Corporation of India intervention, and raw-cotton price trends.
  • Monthly cotton-yarn export volumes and key destination demand, particularly China, Bangladesh, Turkey, and other major importing markets.
  • Apparel export order cancellations, buyer requests for price renegotiation, and export data from India versus Bangladesh and Vietnam.
  • Reports of reduced operating shifts, delayed wage payments, or closures among small and mid-sized garment units.
  • AEPC is likely to intensify lobbying for a cotton-yarn export duty, quota, minimum export price, or mandatory export registration/monitoring mechanism.
  • Apparel exporters will seek revised pricing and shorter validity windows from overseas buyers, while prioritizing higher-margin orders and reducing exposure to fixed-price contracts.
  • Garment manufacturers may accelerate substitution toward polyester-cotton blends, recycled fibers, and lower-yarn-consumption product categories.
  • Spinners and yarn exporters are likely to oppose restrictions, arguing that export curbs impair mill utilization, farmer-linked demand, and India’s credibility as a textile supplier.
  • Larger exporters may build yarn inventories, lock in supply contracts, or use imports where viable; smaller units will face greater working-capital strain.

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