Rising inputs costs force price hikes in South India yarn hubs

The South Indian cotton yarn market is facing intense price pressures as spinning mills in Tiruppur and Coimbatore raise rates to counteract the sharp rise in raw material expenses. Since early April 2026, the Cotton Corporation of India has implemented successive price increases, recently raising floor prices by Rs 900 per candy to follow an earlier Rs 1,000 hike. This has led to benchmark 20s combed yarn prices to approximately Rs 277 per kg, a significant jump that adds roughly Rs 6 to the production cost of a standard knitwear garment. While export demand from Bangladesh remains a stabilizing force, the domestic weaving sector is showing signs of fatigue, with many smaller units operating on thin margins and slowing procurement to resist further hikes.

The industry is also contending with a 14.02 per cent Y-o-Y decline in overall textile exports, largely due to logistics bottlenecks stemming from the ongoing West Asia conflict. Experts suggest, while mills are attempting to protect their bottom lines, the disconnect between high fiber costs and cautious garment demand creates a precarious environment. This supply-side tightness is expected to persist as the current cotton season.

One of India’s premier knitwear cluster, Tiruppur contributes over half of the country’s apparel exports. Dominated by cotton-based manufacturing, the region is shifting toward sustainable MMF to align with global ESG standards. Despite recent export volatility, local industry leaders are targeting a return to double-digit growth through increased technical textile integration.