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Indian cotton becomes attractive for Chinese spinners
09 Aug '13
1 min read
The depreciation of the Indian currency in recent months has increased the competitiveness of Indian cotton in international market, making it attractive for Chinese spinners, according to market analysts.
The currency conversion rate was 1 Chinese yuan = Rs. 8.87 in Mid-May 2013 and the exchange rate on August 9 was 1 Chinese yuan = Rs. 9.91
From January to May this year also, the share of Indian cotton in the Chinese market was greater than the US cotton.
In 2013-14, India’s cotton production is expected to reach a record high, and its share in the Chinese market is likely to grow further, while also having an impact on the global cotton prices, analysts say.
In view of the continuing wide difference in prices of domestic and imported cotton, Chinese spinning enterprises are forced to rely on imported cotton to reduce their production cost, and correspondingly increase their competitiveness.
However, cotton imports are subject to quota restrictions, which make it difficult for Chinese companies to freely use imported cotton.
Fibre2fashion News Desk - India
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