Govt weighs export floor price for cotton yarn to ensure domestic supplies
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The government is weighing a minimum export price for cotton yarn to ensure domestic supplies.
- ✓Prices surged from ₹250 per kg in early 2026 to nearly ₹400 now.
- ✓“Levying an MEP on cotton yarn is under discussion,” said an official.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Livemint
- Reading Speed
- 5 Minute(s)
- Market Focus
- India Economy
Cotton yarn prices have surged around 60%, from about ₹250 per kg in early 2026 to nearly ₹400 per kg now, putting pressure on textile manufacturers, particularly those that use yarn to produce fabrics and garments, according to the industry proposal submitted to the textiles ministry and reviewed by Mint.
“The textiles ministry is vetting proposals from the industry, which has expressed concerns over rising cotton yarn prices. We are in discussions with apparel manufacturers who are preparing to meet delivery deadlines for upcoming orders,” said the first of the two persons cited earlier, both speaking on condition of anonymity.
“The price increase has been attributed by industry representatives to supply-side constraints and rising overseas demand,” said an industry executive, who wished not to be named.
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