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Newsline-National | December 2016

India’s cotton yarn exports dip

Cotton yarn exports in India declined by 11.58 per cent in terms of value and 4.44 per cent in terms of volume during April - June this year compared to the same period last year. Cotton yarn exports to China, being the major consumer has declined. China imported 149.66 million kg of cotton yarn during the first three months of last financial year (2015-2016) and it dropped to 99.09 million kg during the same period this year. The decline in exports started in April 2014.

Total cotton yarn exports from India used to be 140 million kg a month and it has dropped to about 100 million kg now, says M Senthil Kumar, chairman of Southern India Mills’ Association. With a drop in demand in the domestic and export markets, capacity utilisation in textile mills has also come down. With the existing capacity, India can produce up to 500 million kg of yarn a month. However, it is only about 470 million kg now.

Bangladesh is the second largest buyer of cotton yarn from India and exports to Dhaka went up by 38.87 per cent in value between April and June this year and 52.1 per cent in terms of volume during the same period.

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