Increase in cotton and yarn prices in the last six months is impacting the apparel value chain leading to even cancellation of garment export orders, claim apparel exporters.Chairman of the Apparel Export Promotion Council (AEPC) A. Sakthivel said export of yarn and increase in cotton yarn prices is affecting the competitiveness of the apparel sector and hence, the Union government should regulate yarn exports.Cotton yarn prices have increased by around 60 % since January. With increase in export of Indian cotton and cotton yarn to apparel-producing countries such as Bangladesh and Vietnam, Indian garment manufacturers are losing their competitiveness, he said.R. Sakthivel, a garment exporter in Tiruppur, said cotton yarn prices increased by ₹7 a kg in March and in August by more than ₹17 a kg. In the last six months, the prices have gone up by ₹60 to ₹70 a kg. Garment exporters have entered into price contracts with the foreign buyers and cannot revise it now.Due to recent supply and production issues in Bangladesh, some of the major international apparel importers began looking at India as an alternative sourcing destination. However, with continuous increase in yarn prices, price gap between India and Bangladesh widened and some of these orders were diverted to competing countries, he said.Textile mills are revising yarn prices frequently and without prior notice and MSME units cannot buy yarn in bulk, say garment exporters.Howevever, texile mills contend that hike in cotton prices is the reason for jump in yarn prices. Prices of the widely used Shankar 6 variety of cotton jumped 26 % in the last six months. Published - August 29, 2026 08:24 pm IST