Tamil Nadu's Textile Industry Faces Crisis Amid Rising Cotton Prices

The textile industry in Tamil Nadu is grappling with a crisis as cotton and yarn prices continue to rise sharply. Chief Minister Vijay has written to the central government, requesting urgent intervention to address the situation. With cotton prices increasing by 25% in recent months and yarn prices also on the rise, the industry is under significant strain. This sector is vital for millions of livelihoods in the state, particularly for women in rural areas. The Chief Minister's call for the elimination of import duties on cotton aims to alleviate the financial burden on the industry and enhance its competitiveness in the global market. Industry organizations are echoing these concerns, seeking immediate relief from the government.

By Narendra Chaudhary May 15, 2026, 22:45 IST

Concerns Over Rising Cotton and Yarn Prices in Tamil Nadu

In Tamil Nadu, the escalating prices of cotton and yarn are raising significant concerns. Chief Minister Vijay has reached out to the central government, urging them to intervene in this pressing issue. He highlighted that the textile industry is facing a severe crisis due to a shortage of cotton and increasing commercial activities.

In his correspondence, Chief Minister Vijay pointed out that Tamil Nadu is the largest exporter of textiles and garments in the country. Millions of individuals are directly and indirectly linked to this sector, including a substantial number of women from rural and semi-urban areas whose livelihoods depend on it.

Recent months have seen a sharp rise in cotton prices. Reports indicate that the price of cotton, which was ₹54,700 per candy two months ago, has surged to ₹67,700 per candy, marking an increase of approximately 25%.

Similarly, the price of yarn has risen from ₹301 per kilogram to ₹330 per kilogram. Industry insiders claim that the soaring raw material costs have significantly inflated production expenses, placing immense pressure on small and medium enterprises.

It's noteworthy that India's textile industry plays a crucial role in the global market, with Tamil Nadu being a key hub. Cities like Tirupur, Coimbatore, and Erode are renowned across the country for textile production and exports.

Chief Minister Vijay emphasized that importing cotton has become essential to ensure a steady supply of raw materials for the industry. However, the 11% import duty on cotton is hindering relief for the sector.

He has requested the central government to immediately eliminate the import duty on cotton, allowing the industry to procure raw materials at lower prices. This move, he argues, would aid in boosting exports and strengthen the Indian textile industry in the global market.

The Chief Minister also noted that after agriculture, the textile and apparel sector is the largest employer in Tamil Nadu. Therefore, it is the government's responsibility to safeguard the jobs of millions and ensure the stability of the entire textile supply chain.

Industry organizations have also expressed their concerns regarding the rising cotton prices and are calling on the central government for prompt relief.