Share of Chinese purchases in Indian yarn exports more than doubled

01-Jul-2024 05:53 PM

Mumbai. One of the main reasons for the increase in yarn exports from India is the strong demand for it in China. In the financial year 2022-23, the share of Chinese purchases in the total export of yarn from India was just 10 percent,

which more than doubled to 21 percent in the financial year 2023-24. According to industry analysts, the price of Indian cotton yarn is running at a competitive level,

while some problems and challenges remain in Jin Jiong province, in view of which its better export trend in China is expected to continue in the current financial year 2024-25.

It is worth noting that during the financial year 2023-24, there was a strong increase of 83 percent in the export of cotton yarn from India as compared to 2022-23.

The share of yarn exports from India's total production also increased from 19 percent to 32 percent. China's purchases played a major role in this. In fact, China is facing allegations of forcing workers in its major cotton producing province Jinjiang to work, not paying them proper wages and using child labour.

After the withdrawal of Corona related rules and controls in China, i.e. from January 2023, concerns increased in the global textile market about the use of yarn and fabrics made from cotton produced in Jinjiang and this started affecting the export business of China badly. As a result, Chinese textile mills started increasing the import of cotton yarn from India.

About 60 percent of cotton yarn from India was exported to three countries - Bangladesh, China and Vietnam during the financial year 2023-24, while the remaining 40 percent of the yarn was shipped to other countries. The process of export to these countries is still going on.