Indian Cotton Yarn Exports Surge as demand from Turkey and Europe Increases

Mumbai, 22 MAR (Commoditiescontrol): In recent months, the demand for Indian cotton yarn has increased significantly due to an unexpected rise in demand from Turkey and Europe. Experts attribute this rise to the devastating earthquake that hit Turkey, causing a significant impact on its textile spinning sector. As a result, Turkey has started importing cotton yarn from India.

Similarly, Europe cannot import cotton from Turkey and has started turning to India as a supplier. Consequently, the share of Turkey and Europe in India's total cotton exports has risen from 15% to 30%.

The Indian textile industry faced a challenging year previously, as domestic cotton prices remained higher than international prices. However, this has now changed, and Indian cotton prices are on par with international prices. This, coupled with a good crop, has resulted in a significant rise in demand for Indian cotton yarn. China placed significant orders for yarn in December and January, and now there is steady demand from Turkey and Europe.

After a significant reduction in cotton yarn exports from April 2022 to December 2022, the industry has seen a recent increase in demand. Cotton yarn exports fell to 31 million kg in October 2022 but rose to 68 million kg in January, the highest since April 2022.

The vice president of the Spinners' Association of Gujarat (SAG) noted that spinning mills across the state are functioning at 100% capacity due to the steady demand, resulting in an empty inventory in the value chain. Furthermore, cotton and cotton yarn prices have decreased, which is expected to generate better demand.

A market participant stated, "The past year was challenging for the Indian textile industry because our cotton prices have remained higher than the international prices. However, now our cotton prices are on a par with the international prices, and we have also seen a good crop."

Overall, the surge in demand for Indian cotton yarn from Turkey and Europe is proving to be a significant boost for the Indian textile industry's recovery following a challenging year.

(By Commoditiescontrol Bureau: 09820130172)