Rise in cotton prices, dearth of incentives make exports uncompetitive

Cotton yarn, fabric exports see dismal growth of 0.38% year-on-year in dollar terms in December 2017

A sharp 11 per cent rise in cotton prices during the past two months in India has pushed up raw material costs for mills, making export unviable and uncompetitive. International cotton prices are also up by 17 per cent, but 2.7 per cent appreciation in the Indian rupee has nullified all the gains to be had from global cotton prices.

While cotton yarn and cotton fabric exports have seen a dismal growth of 0.38 per cent year-on-year in dollar terms in December 2017, that for man-made yarn and fabrics grew by 6.77 per cent.

As per the central government's quick