Cotton yarn likely to meet its exports target of $4.70 billion for FY14

India ‘s cotton yarn to meet its exports target for 2013-14 in spite of seasonal flux usually seen every April and high raw cotton prices as per the Cotton Textiles Export Promotion Council (Texprocil’s) study. Cotton yarn exports are expected to be around 1,350 million kgs valued at $4.70 billion.

According to Texprocil statistics India’s cotton yarn exports in the first 10 months (April-January ) valued at $3.75 billion (around 1,082 million kgs). It is estimated that yarn exports for the entire 2013-14 would reach at $4.70 billion (around 1,350 million kgs).

However, there is an increasing angst in the industry due to recent developments in Chinese cotton policy as China is the major importer of cotton and cotton yarns from India.

At present, the price difference between Indian and Chinese cotton is high, with the Indian yarn selling at much lower rates. Prices of Indian cotton yarns after payment of duty and taxes in China are still very much lower than the Chinese domestic yarn prices.

The high quality of Indian yarns is sure to get firm orders from international markets, even if the difference between Chinese and international cotton prices narrows down substantially.