Stable yarn prices mask India's export competitiveness crisis, stagnation amidst rival

The stable pricing of spun yarn across key centers like Coimbatore, Bhilwara, and Ludhiana reflects a market stasis, not health. This quiet trading masks a severe competitiveness crisis. Latest figures reveal India's apparel exports stood at $13.04 billion in FY24, dramatically trailing Bangladesh's $46.9 billion, a $30 billion gap. The primary structural issue is India’s slow market movement with exports remaining cotton-heavy (55 per cent of apparel), despite global demand shifting decisively toward Man-Made Fibres (MMF) and technical textiles. This misalignment, coupled with lead times of 45-60 days, renders India unattractive for fast-fashion sourcing.

To bridge the persistent 15-20 per cent cost disadvantage over rivals, the government has extended key financial supports. The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, recently extended to March 2026, offers critical relief by refunding embedded, non-refundable taxes, boosting margins for yarn and fabric exporters. Beyond this fiscal aid, the industry must replicate vertical integration success: players like Pratibha Syntex Ltd, a composite textile manufacturer, have demonstrated an 80 per cent improvement in on-time deliveries by unifying their supply chain. This mandate for end-to-end efficiency is crucial for India to meet escalating sustainability and scale demands from EU and US buyers.