Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

Huge fall in Indian cotton yarn exports

India’s cotton yarn exports have fallen by 38 per cent from April to September. High cotton prices in India and global trade wars have created an uncompetitive situation for Indian spinners. Indian prices are far higher than global prices. Exports of cotton yarn to markets such as China, Bangladesh, Vietnam, South Korea, Colombia and Turkey have dropped. In particular exports to the biggest market – China – have dipped 50 per cent because of reduced demand on account of the trade war with the US.

Orders from China’s weaving, knitting, and garment factories have been drying up due to the ongoing trade war with the US. This has had a cascading impact on the textile sector in Bangladesh, which has been the top destination for Indian cotton and yarn. The subdued demand has dragged prices of yarn below the cost of production in India that hit exports. Similarly, demand from Indonesia and Vietnam has also fallen for the same reason. In addition cotton yarn mills are facing declining domestic demand due to the economic slowdown. To battle the situation, some mills are reducing production by up to 30 per cent.

However, as cotton prices are set to fall with arrivals of the new crop, Indian yarn too may be back in the game from November.

 
LATEST TOP NEWS
 


 
MOST POPULAR NEWS
VF Logo