India’s home textile exports share market to US remains dull

India’s market share in home textile exports to the US (sum of all products) remained flat YoY at 33% during the current year 2017. Ability to renegotiate product prices in the backdrop of the rising raw material prices and rupee appreciation will be the key monitorable.

India’s market share (in dollar terms) in cotton sheets increased 1ppt YoY to 50% in CY17. India has been consistently gaining a 1ppt market share in cotton sheets each year since CY12.

In Dec’17, India’s cotton sheet market share (dollar terms) came in at 50%, a decrease of 1ppt YoY. The CY16market share increased 1ppt YoY to 50%. This is the 6th consecutive year in which India witnessed 1ppt YoY increase in market share. In the same year, China’s market share decreased 2ppt YoY to 20%, while Pakistan’s share remained flat YoY at 16%.

However, in the same year , India’s market share in the terry towels segment declined significantly by 8ppt YOY to 30% in Dec’17. The CY17 also witnessed declined 1ppt YOY to 39% in dollar terms, led by multi-year low market share (sub 35%) reported for the past four months.

In CY17, China’s market share increased 1ppt YoY to 24%, while Pakistan’s lost 1ppt YoY share to 21%. India’s CY17 exports of cotton sheets to the US (in dollar terms) increased 1.9% YoY to $717mn (vs. a 0.3% decline in world cotton sheet exports to the US), led by a 2.9% rise in volumes, partially offset by a 0.9% decline in realisation.

According to Cotton Association of India, infestation of pink bollworm in major cotton producing regions of India has led to an increase in cotton prices since mid-Dec’17 (+5% to R111/kg) and 2% reduction in cotton crop estimate for 2017/18. In addition, rupee appreciation (6.4% YoY CY18’YTD) continues to remain an overhang.