The increase in cotton yarn prices is hurting the profitability of the textile industry even as free trade agreements (FTAs) signed in recent times position India as a globally competitive player. The price surge over the past few months is impacting the textile industry at a time when it was expected to be a major beneficiary of the policy initiatives undertaken by the government.
Cotton yarn prices have increased 60% to around Rs 400 per kg from Rs 250 per kg in early 2026, according to the Apparel Export Promotion Council (AEPC). Amid the sharp increase, apparel exporters last month urged Commerce Minister Piyush Goyal to consider steps to regulate cotton yarn exports to contain rising yarn prices, as per media reports.
