Exports of clothing are impacted by rising cotton yarn prices, and the rupee’s decline provides no respite
The exports of clothing have been significantly impacted by rising cotton yarn prices, creating challenges for manufacturers in maintaining competitive pricing in global markets. Cotton yarn, a critical raw material for the textile industry, has seen price surges driven by supply chain disruptions, increased global demand, and higher input costs, including energy and logistics.
Adding to the industry’s struggles, the decline of the Indian rupee has offered little relief. While a weaker rupee typically benefits exporters by making their goods cheaper internationally, the benefits are offset by the increased costs of imported raw materials and reduced profit margins. The dual impact of elevated raw material costs and currency fluctuations has put immense pressure on exporters, especially in the labor-intensive small and medium enterprise (SME) sector, which forms the backbone of India’s textile and apparel industry.
To navigate these challenges, stakeholders are urging policy interventions, such as subsidies, export incentives, and measures to stabilize raw material prices. Additionally, diversification into value-added products and exploring alternative materials could help mitigate the adverse effects of the cotton yarn price surge. Despite these difficulties, the global demand for sustainable and ethically produced textiles offers a silver lining for exporters focusing on innovation and quality.
