Home / Knowledge / News / Cotton / India's cotton yarn exports may turn positive this year
India's cotton yarn exports may turn positive this year
09
Mar '17
Hopes of revival of cotton yarn exports from India have increased after the Chinese cotton auction began at 25 per cent higher price than that prevailing in the Indian domestic market. Since Indian cotton attracts 3.5 per cent duty in China, it is likely that Chinese textile mills would prefer to import cotton yarn, instead of cotton, from India.
 
On the first two days of the Chinese cotton auction, average price was 15,476 yuan per ton (first day) and 15,332 yuan per ton (second day). This roughly translates to price between Rs 51,000 and Rs 56,000 per a candy of 356 kg, which is much higher than the currently prevailing rate of around Rs 42,000 per candy in domestic markets. So cost-wise, Indian cotton is cheaper compared to the cotton being auctioned by the Chinese government from its reserves.
 
Another factor in favour of Indian cotton is that the fibre being auctioned by the Chinese government is up to seven-year old. Hence, the quality of the auctioned cotton may not be as good since it is natural for cotton to start deteriorating and turning yellow when stocked for more than two-three years.
 
Though India tends to gain because of these factors, it may not translate into more export orders for Indian cotton. It is because of the 3.5 per cent duty being levied by China on import of Indian cotton. So, it is very likely that Chinese textile mills would prefer to import Indian cotton yarn, instead.
 
During April-December 2016, cotton yarn exports from India stood at 872 million kg, down 12 per cent compared to exports of 987 million kg in the corresponding period of the previous year. (RKS)

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 29th Apr 2017

EU rules needed to curb textile worker exploitation: MEPs

European Union (EU) rules are needed to oblige textile and clothing...

Apparel/Garments | On 29th Apr 2017

US retail operating growth to be 1.5-2.5% in 2017: Moody's

The forecast for operating income growth in the US over the next 12...

Textiles | On 29th Apr 2017

Slight drop in Unifi 2017 Q3 sales

The net sales of Unifi Inc., one of the world's leading innovators in ...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X