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30 August 2026

Apparel exporters impact from cotton price hikes

The topic provides relevant context on the challenges faced by the textile sector, specifically regarding input cost inflation and export competitiveness, which is useful for answering questions on industrial policy and economic growth.

1 min read 2 questions 1 prelims

Notes

  • Cotton yarn prices have increased by approximately 60% since January.
  • The price of Shankar 6 variety cotton has risen by 26% over the last six months.
  • Apparel exporters report a price increase of ₹60 to ₹70 per kg for cotton yarn in the last six months.
  • Rising input costs are impacting the competitiveness of the Indian apparel sector against countries like Bangladesh and Vietnam.
  • Garment exporters face challenges due to fixed-price contracts with foreign buyers, preventing cost pass-through.
  • The Apparel Export Promotion Council (AEPC) has suggested government regulation of yarn exports to stabilize domestic supply.
  • MSME garment units are disproportionately affected as they lack the capital to purchase yarn in bulk, while textile mills frequently revise prices without notice.
  • Increased exports of Indian cotton and yarn to competing apparel-producing nations are cited as a factor in domestic price hikes.

Questions

  1. Analyze the impact of volatile raw material prices on the competitiveness of India's textile and apparel export sector. What measures can be adopted to balance domestic supply requirements with export-oriented growth? 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. The Indian textile industry is a significant contributor to employment and foreign exchange earnings. Discuss the structural challenges faced by the apparel value chain, particularly MSMEs, in the context of global market fluctuations and supply chain integration. 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. Which of the following factors has been identified by apparel exporters as a primary reason for the loss of competitiveness in the Indian garment sector?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-08-30/apparel-exporters-impact-from-cotton-price-hikes