The sudden rise in cotton prices in India might slowdown the already dull apparel business. Cotton arrivals in Tamil Nadu markets have decreased and resulted in a sudden increase in cotton prices. Inflation has already increased the price of warp yarn and soon hosiery yarn prices are also expected to go up, subsequently increasing prices of garments. If cotton prices keep rising, hosiery manufacturers will be affected. The domestic hosiery market has already been reeling under pressure.

While in many countries, a hectare yield 1400 kg of cotton, in India the yield is only around 500 kg of cotton per hectare. Besides, unscientific data collection on cotton production is a bane. Gujarat and Maharashtra together account for more than half of the country’s total cotton production. Textile mills have been advised against panicking over reports of a tight cotton stock position during the current season. The Indian Cotton Federation has appealed to traders to desist from speculating on the production of cotton and increasing the price of the white fiber. Demand for Indian cotton happens to be robust this year from China as a trade war is prompting the world's top consumer to avoid imports from the United States.