Politics · India Bureau
India's apparel exporters seek curbs on cotton yarn exports to rein in costs
Industry bodies have appealed to the commerce minister to regulate cotton yarn shipments abroad as surging prices threaten the competitiveness of India's garment sector. Supply constraints and speculative trading are driving yarn costs higher, placing pressure on manufacturers.
LSN India ·
The Apparel Export Promotion Council (AEPC) has urged Commerce Minister Piyush Goyal to consider regulatory measures on cotton yarn exports, citing sharp price increases that are undermining the industry's competitive position globally.
AEPC Chairman A Sakthivel said in a communication to the minister that rising raw cotton and yarn prices stem from supply-side constraints. Limited stock availability among ginners and reduced arrivals have forced spinning mills to increasingly depend on Cotton Corporation of India auctions, he noted.
Substantial quantities of cotton have shifted from farmers to traders in recent months, contributing to hoarding and speculative trading practices that are artificially inflating market prices, Sakthivel said. The council has specifically requested regulatory action on exports of yarn in the 20s count and above categories, which have experienced the steepest price increases.
The appeal reflects growing anxiety within the apparel manufacturing sector over input costs. As yarn prices climb, Indian garment makers face mounting production expenses at a time when global demand remains subdued, squeezing margins and export prospects.