Indian garment manufacturers are facing intense margin pressures following a steep rise in raw material costs, prompting industry bodies to demand immediate administrative controls. Cotton yarn prices have escalated by nearly 60 percent, leaping from approximately Rs 250 per kg earlier this year to Rs 400 per kg, severely disrupting downstream fabric producers and ready-made apparel exporters.

In response, Dr A Sakthivel, Chairman, AEPC formally petitioned the Union Commerce and Textiles Ministries to implement targeted trade regulations on outbound shipments of cotton yarn of 20s count and above. Industry leaders warn, unchecked overseas outflow of quality domestic yarn starves local weaving units, rendering execution of international orders unviable.

This cost inflation coincides with broader state-level initiatives, such as Karnataka's establishment of specialized export facilitation centers in Doddaballapur and North Karnataka, designed to streamline compliance and logistics. However, analysts caution, infrastructural upgrades risk underperforming unless raw material volatility is actively contained. For a mid-sized garment exporter in Bengaluru fulfilling high-volume European contracts, the soaring yarn expense adds immense pressure on preset fixed-price agreements. Restricting raw material leakage remains critical to safeguarding the manufacturing value chain, protecting domestic employment, and sustaining India's position in worldwide apparel trade.

Growing through financial enhancement programs and market diversification

Established in 1978, the Apparel Export Promotion Council functions as the apex body for Indian garment manufacturers, promoting ready-made apparel exports across key North American and European markets. The organization targets robust export expansion through strategic policy advocacy, financial enhancement programs, and global market diversification initiatives.