A resurgence demand from China for cotton yarn has boosted India’s export, which has gone up by 55 per cent in the first four months of the current financial year. If the trend continues, cotton yarn exports will likely hit a new record this year.
“If the trend continues, cotton yarn exports would beat all previous expectations to set an all time record this year,” says D K Nair, Secretary General, Confederation of Indian Textile Industry. Reports reveal the Cotton Yarn Advisory Board has projected a marginal 14.2 per cent increase to 1,150 million kg in cotton yarn exports from India this financial year. But actual exports could be even higher. Total cotton yarn production this year is estimated at 4,000 million kg. “The substantial increase in exports, however, has not affected domestic supply to mills at all. Domestic mills are operating smoothly with adequate capacity,” said Nair.
Further the exponential growth in cotton yarn shipment has lowered the prospects of cotton exports as Chinese importers find purchase of fibre cost effective. Another factor which helped exports is the record depreciation in the rupee against the dollar. Exporters have rushed to sign a pact with importers at the current exchange rate and lock in till exports are executed. Also, cotton prices have jumped 11.79 per cent to trade at Rs 13,329 a quintal mid August against Rs 11,923 a quintal a month ago.