The yarn price in India as whole has been increasing. many say the reason for the price hike is due the cotton price rise. Now comes the question, has the demand for cotton gone due to low production as compared to previous, the answer is no, the production cotton is as compare to previous year. The main culprit the is exports, According to Cotton Advisory Board (a government body under the Central Textile Ministry) the cotton export for the year 2007-2008 is 8.5 million bales, (one cotton bale consists of 170 kgs) out of which 60% has gone to China alone.if these exports were not allowed by our government then, there would never have been an shortage of cotton in the home market. Now Tirupur exporter have felt the pinch of the rising yarn price.