India’s cotton yarn exports fell 70 per cent during September 2022.
Cotton yarn shipments to Bangladesh dropped by 71 per cent in September 2022, while shipments to Egypt and Portugal tumbled by 57 per cent and 79 per cent. However shipments to Italy and Sri Lanka increased by ten per cent and 37 per cent in September 2022.
The projection of India’s cotton crop was lowered from around 3.55 crore candy to 3.15 crore candy and it resulted in an unprecedented rise in cotton prices, reaching Rs. 1.10 lakh per candy from its traditional price of about Rs 45,000 per candy. The price of Indian cotton remained at least 20 per cent higher than that of other varieties and therefore Indian competitiveness against Turkey, Vietnam and China went down.
In fact, India imported about 10,000 tons of cotton yarn from Vietnam. The far-eastern country was earlier one of the major markets for Indian cotton yarn. The scarcity of cotton along with a comparatively higher price in India has resulted in a shift in its trade dynamics with Vietnam.Cotton prices in India are still ruling higher than those in the international market.But fiscal year 2022 had proved to be a great one for Indian cotton yarn exporters as they managed to tap 92 per cent growth on a yearly basis.
