Since November last year, Indian cotton and yarn prices have increased. Not only are cotton prices high, they're also volatile. This is an uncertainty for weaving units.

Since June this year, an increase in imports of cotton yarn has raised concerns among domestic textile mills. Available data showed that imports of cotton yarn had almost tripled compared to the previous year's period. In June 2022, it was higher than in July last year. In June, imports amounted to 1.15 million kg (0.44 million kg). In July they reached 4.54 million kg (0.17 million kg).

In reality, several factors explain the increase in imports. However, the United States has banned textiles containing cotton from the Chinese province of Xinjiang, leading importers of cotton yarn to be cautious. The president of the Southern India Mills' Association Ravi Sam said that India produces nearly 340 million kg of cotton yarn per month and that imports are relatively low.