AHMEDABAD: Lower production of cotton crops in China's Xinjiang province this year has resulted in the country ordering nearly 5,000 tonnes of cotton yarn from India in the last fortnight. The province produces more than 70% of China's total cotton production.
The latest orders are going to help the Gujarat based. The spinning mills undergoing idling are on a large scale as most of the orders will be fulfilled by the state's spinning mills in the next two months.
Indian cotton prices have remained higher than international prices for almost a year, and hence, exports of cotton yarn have dropped. China's Xinjiang state is estimated to produce about 10-15% less this year at 27.5 million bales.
Spinners' Association Gujarat (SAG) vice-president Jayesh Patel said, "Xinjiang cotton production is estimated to be much lower this year. As per our estimate, China has placed orders for around 250 containers of 20 tonnes each. Most orders are 20-count." And for 32- count cotton yarn. A major part of this will be supplied to Gujarat-based spinning mills." He said cotton prices have come down to Rs 59,000 per candy (356 kg) in Gujarat and Rs 58,000 in Maharashtra. Rupees.
According to industry estimates, India's cotton production this year will be around 34 million bales (170 kg each). "As arrivals are slow and farmers' holding capacity is better, arrivals of stocks will continue till the end of the season in September," said Patel. Cotton prices are expected to reach Rs 55,000 per candy level, and yarn prices once 245 per kg from the current level of Rs 255 per kg, we will see more export demand as our prices will be in line with international prices,” said Patel.
Rahul Shah, Co-Chairman, GCCI Textile Taskforce.
“With the forecast of lower cotton crop, cotton yarn demand from China has increased in the last two weeks. For India, getting significant orders from China is a good sign. Till two years ago, the demand from China was around 40% of our total exports, which has now come down to around 15%.
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