After China changed its cotton stockpiling policy, India’s yarn exports in April fell by nearly 25%. Although the demand for cotton yarn in India’s domestic market shows signs of recovery, textile companies are not aware of this. Local agencies stated that the monthly export volume of yarn in 2013 was close to 120,000 tons, but the export volume in April 2014 was only 90,000 tons. The adjustment of China’s cotton policy is the main reason for the decline in India’s cotton yarn exports. 50% of India’s cotton yarn is exported to China.
In the past two months, the amount of cotton yarn imported by China from India has declined, which has put pressure on Indian yarn exports. Price is a major concern for Indian exporters. However, K Selvaraju, secretary-general of the South India Textile Union, said that local exporters are also actively exploring other markets and trying to increase their market share in Bangladesh, South Korea and Hong Kong.
