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Web Exclusive | September 2016

Spun yarn exports drop 36%

India’s spun yarn exports in July 2016 plunged 36 per cent in volume terms and value terms. Indian spinners faced a fall in their margins and found it difficult to compete on the international market. Thus, Bangladesh became the largest importer of spun yarns from India in terms of value in July.

In July 2016, 83 countries imported spun yarn from India, with Bangladesh at the top, accounting for 18 per cent of the total value with imports rising 24 per cent year on year in terms of volume and 22 per cent in value. China ranked second in July and accounted for around 18 per cent of all spun yarn exported from India. Peru was the third largest importer of spun yarns. These three top importers together accounted for around 42 per cent of all spun yarns exported from India in July.

China has significantly reduced cotton yarn imports from India. In July, India’s cotton yarn exports to China plunged 75 per cent year on year, both in terms of shipment and value. In 2016, China’s cotton yarn imports dropped 30 per cent year on year. Imports from India declined 49 per cent. This significant drop is likely to impede Indian exports in coming months since China has now trained its eye on supply from Vietnam.
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