Coimbatore yarn prices stable amidst export crunch

Wholesale prices for Open End (OE) and organic cotton yarn in Coimbatore, a major spinning hub, remain stable at Rs 100-Rs 240/kg. This stability is crucial as the broader Indian textile and apparel export sector grapples with a steep 12.91 per cent year-on-year decline in October 2025, largely due to retaliatory US tariffs.

To address the raw material cost and supply bottlenecks that compounded the export challenge, the government has taken two significant, pro-industry steps in quick succession. The government first rescinded Quality Control Orders (QCOs) on 14 items, including key intermediates like Polyester Staple Fibre (PSF) and Polyester Yarn. This was quickly followed by the revocation of the QCO on Viscose Staple Fibre (VSF) on November 18, 2025, a critical raw material and the second-largest component of the Man-Made Fibre (MMF) basket.

These QCOs, which mandated compulsory BIS certification, had inflated the price of domestic raw materials by an estimated 10-30 per cent compared to global benchmarks, and restricted access to specialty imports. The removal of these barriers, particularly on VSF, is expected to ensure seamless access to globally competitive raw materials, thus lowering input costs and enhancing the competitiveness of Indian MMF products by an estimated 20-25 per cent.

Companies like AB Cotspin India, which focuses on diverse yarns, are expected to benefit from easier sourcing and lower operational costs. The industry’s expected 7-9 oer cent revenue growth for FY26 is now more achievable, provided the export market recovers. This strategic policy shift aligns with the nation's ambitious Vision 2030 to achieve $100 billion in textile exports.