Cotton yarn export records 13 months of fall, China resurrects

Cotton yarn exports from India have been dwindling month after month, posting 13 months of fall in year on year comparison. And this fall has been called upon by industry body the Cotton Textiles Export Promotion Council as “matter of deep concern”. It has pointed that the withdrawal of Focus Market Scheme for Cotton yarns was also the cause of steep decline in exports to non-conventional markets like African countries like Peru, Morocco etc.

In May 2015, cotton yarn worth US$250 million (INR1,590 crore) was exported to 72 countries with volumes at 84 million kg. The average unit value realization was US$2.99 a kg, up US cents 5 from April but US cents 45 down from the same month a year ago. While exports in US$ terms recorded the 13th consequent month of fall, shipment has been showing a positive year on year growth since February 2015. Unit value realisation has also been rising since March consequentially, having added US cents 8 a kg from the low of US$2.91 a kg on an average in February 2015.

China and Bangladesh were the top two importers of cotton yarn in May, together accounting for close to 53 per cent of total cotton yarn exported from India. Their combined volume was 48 million kg worth US$133 million. During May, 77 countries imported cotton spun yarn from India with China continuing at the top. Shipment to China was up 30 per cent in terms of volume and 15 per cent in terms of value YoY. Bangladesh was the second largest importer, accounting for 12 per cent of all cotton yarn exported from India, but its import declined in May. Egypt, the third largest importer of spun yarns, saw volume and value down YoY.

During May, Australia, South Africa and Cote D’Ivoire were the fastest growing markets for cotton yarn, more than doubling their imports and accounting for 0.25 per cent of total cotton yarn export value. Nine new destinations were added for cotton yarn export, of which, Honduras, Panama, Cuba, Paraguay and Russia were the major ones.

Five countries did not import any cotton yarn from India, including Oman, Syria, Nigeria, Cyprus and Kuwait which had imported yarns worth US$0.28 million in May 2014. During the month, France, Romania, Lithuania, Costa Rica, and Venezuela significantly cut their imports from India with Venezuela importing cotton yarn worth just US$0.05 million as against US$0.36 million in April 2014.

Combed cotton yarn accounted for 68 per cent of the all cotton yarn exported in May with volumes at 52 million kgs worth US$170 million. Carded yarn export was at 24 million kg. Their respective unit value realization was US$3.28 per kg and US$2.59 per kg. Open ended yarn ex-port was at 6 million kg at an average price of US$1.85 a kg.

Courtesy: YnFx – Fibre and yarn Exports – India