The Bureau of Indian Standards (BIS) is strengthening cotton fibre testing infrastructure across the country under the Scheme for Supporting Other Laboratories for Creation/Augmentation of Test Facilities in Critical Areas.

A press release said it has allocated ₹38.72 crore to modernise 21 key laboratories operated by the Textiles Committee, Power Loom Service Centres, and the Cotton Corporation of India (CCI), located across key cotton-producing regions of India.

The scheme aims to provide 22 high volume instrument testers and 44 trash analysers in the 21 laboratories. Of these, it has commissioned 14 HVI testers and 28 trash analysers in 13 laboratories, including 11 laboratories of the Textiles Committee and two of the CCI.

The release said the objective is to ensure standardised quality parameters across the entire cotton-to-textile supply chain by bridging critical infrastructural gaps, empowering local producers, and positioning Indian cotton for sustained international leadership.

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With cotton and yarn prices continuing to fluctuate, textile mills and garment units in Tamil Nadu are seeking measures to improve cotton productivity and availability.

Spurt in demand for cotton yarn globally is among the main reasons for volatility in its prices, said Ashwin Chandran, chairman of the Confederation of Indian Textile Industry.

International demand for yarn is better than the last couple of years. Demand for cotton yarn was muted since 2023-24. Demand for textile products across the value chain started picking up last December. Most of the textile units maintained hand-to-mouth stocks for the last years because of the low demand.

Demand for yarn from China and Bangladesh saw an increase and domestic demand for garments is also seeing growth. This has led to better market for yarn. Further, hosiery yarn exports are mainly by the mills in Gujarat and not much from those in Tamil Nadu.

However, the cotton futures market went up to 92 cents for a pound and has corrected now to about 86 cents. Thus, the prices of cotton, the basic raw material, saw prices fluctuating. While the landed prices of clean cotton has seen ₹70 increase, yarn prices have increased by about ₹95 a kg in the last one year, he said.

The focus of the entire industry should be on improving cotton productivity in the country for raw material security, he added.

Meanwhile, the Tiruppur Exporters and Manufacturers Association has urged the Central and State governments to ban cotton exports. It said the State, especially the western districts, design and manufactures a wide range of textile products and supply to both, domestic and international markets.

This industry, predominantly driven by small and medium-sized enterprises, provides employment and livelihoods to thousands of people. However, since January this year, certain large spinning mills and traders “have been artificially restricting the supply of cotton, causing yarn prices to skyrocket and creating an unprecedented crisis for local manufacturing units—particularly the small and medium-sized ones,” alleged the Association.

Last year, cotton requirement was 350 lakh bales, whereas current domestic production stands at 290 lakh bales. With the existing cotton shortage, the government removed the import duty (11%) on cotton and 62 lakh bales of cotton were imported. Yet, cotton prices continue to rise.

This is due to artificial market manipulation, the Association claimed. The continuous rise in cotton prices have increased raw material costs, causing garment orders to be diverted to other States and countries, it said.

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Textile mills are witnessing a revival in cotton yarn demand, with capacity utilisation crossing 90%, but a sharp rise in cotton prices is raising concerns over the sustainability of operations.

“The demand for cotton yarn started reviving almost five months ago and currently, mills are not holding much yarn stocks,” said Durai Palanisamy, chairman of the Southern India Mills Association (SIMA).

Cotton prices have risen sharply since mid-March, with domestic prices increasingly moving in line with ICE Futures, he said, adding mills are also maintaining relatively low inventories, with most having less than two months of cotton stock.

Cotton prices, which remained in the range of ₹51,700 to ₹57,000 a candy between October last year and the end of March 2026, had climbed to ₹70,000 a candy on September 2 on an ex-gin basis.

“Various factors such as higher demand from China and lower production expected from the U.S. and China are pushing the prices up,” said Nishant Asher, secretary of Indian Cotton Federation.

The increase in raw material costs has also pushed up cotton yarn prices.

“Our cotton yarn cannot be consumed fully by the domestic apparel sector. Textile mills need to tap opportunities in the international market for viable operations. Yarn prices adjust to cotton prices. Internationally too, yarn availability is under pressure, pushing prices up,” said Ravi Sam, vice-chairman of the Cotton Textile Export Promotion Council.

Industry sources said Indian cotton prices remain lower than international prices. The Cotton Corporation of India (CCI), which holds a substantial quantity of cotton procured under the minimum support price (MSP) regime, should stabilise domestic cotton prices.

Production of cotton during the current marketing season that commenced on October 1, 2025 is estimated to be seven lakh bales less than the previous year.

The Committee on Cotton Production and Consumption that met in Mumbai on July 29 expected the production this season to be 290.24 lakh bales of 170 kg each while the production in 2024-2025 was 297.24 lakh bales. Consumption of cotton by large-scale and MSME textile mills, which are the main consumers of cotton in the country, is like to be 320 lakh bales while it was just about 306 lakh bales last season.

While cotton exports so far are six lakh bales less than the 2024-2025 season, imports are up by almost 15 lakh bales. “We expect the cotton season to end in September with nearly 60 lakh bales of import,” said chairman of the Southern India Mills’ Association Durai Palanisamy.

The next cotton season will start in October with nearly 42 lakh bales of stock, which is the lowest in the last three years. “Cotton yarn exports have crossed 100 million kg a month for the last six months. The domestic demand is also good. Hence, the demand for cotton will continue to grow,” said Mr. Palanisamy.

The Cotton Association of India is of the view that total cotton production, including imports, will be 337 lakh bales. There is an improvement in yield, it said.

However, the trade and industry have expressed concern over the decline in area under cotton for the next season. The progress of cotton production will depend on the monsoon rains, they said.