To deal with declining cotton yarn exports, textile units in India are planning to cut production by 50 per cent to bring down borrowing/outstanding and stocks. Spinning mills in Andhra Pradesh have also declared a production holiday from July to cut down on the number of working days the backdrop of a decline in exports and rising production costs.

Spinners in Gujarat are also cutting production by 15 per cent as the state witnessed a 30 per cent decline in exports. The demand for apparel and fabric also declined as weavers reduced their inventory gradually to cope up with the situation. Exports to China dropped nearly 50 per cent while those to Bangladesh, Vietnam, and Columbia also declined. As per Cotton Textiles Export Promotion Council, cotton yarn exports from India declined by 33 per cent between April and June of FY 2019 compared to the same period last year.

Cotton yarn exports from April to June 2019 were reported to be 226 million kg as against 338 million kg during the same period last year. In June 2019, these exports declined by 50.74 per cent less as compared to June 2018.