Soaring fibre costs cripple Indian textile industry

India’s textile sector is reeling under the pressure of skyrocketing cotton and synthetic fibre prices, which are significantly higher than global rates. This price disparity is making Indian yarn and finished products less competitive in the international market.

Domestic fibre costs went up 24-48 per cent in July compared to international benchmarks. Cotton and synthetic fibre prices have been consistently higher in India than in global markets, eroding profit margins for yarn producers.

Sanjay Jain of TT Textiles blames the Bureau of Indian Standards’ Quality Control Order for restricting Chinese fibre imports, leading to shortages and inflated domestic prices. He urges the government to suspend the QCO for fibres and yarns to level the playing field. Moreover, India's textile exports face stiff competition from rivals like Bangladesh, Vietnam, and Sri Lanka, who enjoy preferential market access in key regions such as Europe.

This perfect storm of high input costs, regulatory hurdles, and unfair trade practices is threatening the viability of India's textile industry.