India's Yarn Exports to China Surge to 21% in FY24, Up from 10% in FY23
2024-07-03 18:06:10
India's FY24 Yarn Exports to China Increased to 21% from FY23's 10%
This increase was fueled by competitive pricing of Indian cotton yarn and global concerns regarding Xinjiang cotton production, prompting markets to turn to India as an alternative supplier. Together, Bangladesh, China, and Vietnam accounted for 60% of India's cotton yarn exports.
India’s cotton yarn exports soared by 83% during the fiscal year, raising the share of yarn exports to 32% of the country's total production, up from 19% in FY23. This export growth helped offset domestic market challenges, where demand remained subdued despite a 9% increase in overall cotton yarn production.
Domestically, cotton fiber prices, after peaking in the first half of FY23, fell by 25% in FY24 due to weaker demand. Looking ahead, despite an anticipated 6% reduction in cotton fiber production for 2024 due to decreased sown areas, carry-over surplus from previous years is expected to stabilize prices.
The ongoing Red Sea conflicts have had minimal impact on cotton yarn exports, as most shipments were directed to stable markets like Bangladesh, China, and Vietnam. However, prolonged conflict could potentially disrupt apparel export volumes, indirectly affecting cotton yarn export volumes and prices.
For FY25, domestic spinners expect a modest volume growth of 4-6%, driven by increased exports to Bangladesh and China. This outlook is supported by competitive yarn pricing and a gradual recovery in export demand, while domestic consumption remains subdued.
