China Cotton Curbs Drive Indian Yarn Prices Up 60%, Apparel Industry Seeks Relief
Indian apparel exporters have urged the government to regulate cotton yarn exports as prices surge amid rising overseas demand, limited domestic supplies and concerns over hoarding.
The Apparel Export Promotion Council (AEPC) has approached the Commerce and Industry Ministry and the Textile Ministry, seeking measures to regulate exports of cotton yarn, particularly 20s count and above, to ensure adequate supplies for domestic apparel manufacturers.
Cotton yarn prices have risen nearly 60%, from around Rs 250 per kg in early 2026 to about Rs 400 per kg currently, according to AEPC. The council said limited stocks with ginners, lower cotton arrivals and increased dependence on Cotton Corporation of India auctions have intensified supply pressures.
AEPC Secretary General Mithileshwar Thakur said growing demand from major apparel-producing countries such as Bangladesh and Vietnam was adding to the pressure. Manufacturers are increasingly sourcing Indian cotton and yarn as US restrictions on cotton linked to China's Xinjiang region under the Uyghur Forced Labour Prevention Act have prompted greater focus on supply-chain traceability.
China accounts for about 29% of global cotton production, while India is the world's second-largest producer. However, India's cotton productivity remains relatively low. The country produces around 23.8 million bales annually across about 11.2 million hectares, compared with much smaller cultivated areas in other major producers such as China, Brazil and the US.
The US has identified cotton and textiles among sectors vulnerable to forced-labour risks linked to Xinjiang. India has also strengthened its trade rules, with the Directorate General of Foreign Trade recently prohibiting imports of goods produced wholly or partly using forced labour.
With global buyers diversifying away from China, India stands to gain from increased textile sourcing. However, exporters warn that rising yarn costs could undermine the competitiveness of India's apparel industry, prompting calls for urgent government intervention.
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