Home / Knowledge / News / Textiles / Chinese firms find Indian cotton yarn lucrative
Chinese firms find Indian cotton yarn lucrative
30
Jul '12
More and more Chinese enterprises are resorting to import of cotton yarn, especially from India in recent months.
 
Firstly, India has the advantage of the low cost of raw material. For example, the difference between the price of China’s cotton grade 328 and that of Indian cotton price of the same grade varies from about 3000 Yuan/ton to about 10,000 Yuan/ton. 
 
Under the cotton quota system, there is a limited scope for low-cost foreign cotton to enter China. Hence, domestic textile enterprises prefer to import cotton yarn as that would be cheaper than buying domestic cotton at high prices and turning them to yarn.
 
Secondly, China’s advantages in labour cost are gradually weakening. The cost of labour is relatively less in India compared to those in China.
 
So, cotton yarn imported from India has obvious advantage over Chinese domestic yarn in price. For example, the price difference between Chinese C21s and C21 yarn made in India is 1800 Yuan/ton.
 
Thirdly, the current exchange rate is also further helping the Indian cotton yarn become lucrative for Chinese textile enterprises.
 
Since 2010, the Renminbi has been appreciating against the US dollar. On the other hand, the Indian rupee has been gradually depreciating since about a year, which has increased the competitiveness of Indian goods, including cotton yarn.
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Kai Poehler
Voith Paper GmbH & Co. KG

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

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search