image sourced from original article at Cotton yarn prices in Gujarat have surged to a four-year high of 300 rupees per kilogram, driven by strong demand from China and Bangladesh. The spike has pushed up fabric prices by 10 to 25 rupees per metre over the past six weeks, with higher processing, fuel and chemical costs adding further pressure. Several powerloom units have shut down due to yarn shortages, tightening supply across the textile value chain.
Industry representatives said the price rise is now visible in retail markets, affecting consumers as higher input costs are passed on. While domestic apparel makers expect a price increase of about 5 to 8 percent, they believe the timing may limit immediate disruption since much of the current season's inventory is already in stores. However, exporters face shrinking margins because existing contracts leave little room to adjust prices.
Textile bodies have urged the central government to remove the 11 percent import duty on cotton to ease supply constraints and align domestic prices with global benchmarks. They warned that higher freight costs, shipping delays and elevated cotton prices have reduced India's competitiveness against countries that allow duty-free cotton imports. With an estimated shortage of 5 million bales this season, the industry fears production cuts, export losses of up to 4 billion dollars and significant job losses if conditions do not improve.
