Cotton yarn export continued to fall in July but slower

Cotton yarn, which accounts for almost 80% of all types of spun yarn exported from India continued to shrink in July. In July, total shipment of basic textile comprising fibres, spun and filament yarns plunged 25% in US$ terms and INR terms as against 52% fall registered in June. During July, exports were worth US$398 million or INR2,707 crore, accounting for about 1.5% of total merchandise exported from India during the month. A year ago, the same items had ac-counted for 2% of total merchandised export. Meanwhile, the INR against the US$ weakened from INR67.87 to INR68.10 this July, which should generally boost export.

Spun yarns shipment totaled 82 million kg (down 32%) worth US$246 million (down 36%) implying an average unit value realization of US$3.02 per kg, down US cents 20 from a year ago average. Bangladesh remained the largest market for spun yarns, topping both in terms of volume and value.

Cotton yarn export was at 62 million kg worth US$192 million (INR1,305 crore), down more than 40% from a year ago level. 77 countries imported cotton yarn from India at an average price of US$3.09 a kg, down US cents 10 from previous month and US cents 20 from last year.

China reemerged as the top market, but imported 77% lesser from India this July. During the month, export to China was 12 million kg worth US$31 million only. China was followed by Bangladesh with volume and value declining more than 35% year on year. Egypt and Peru were the other major importers of cotton yarn, with former recording 8% increase in value and latter jumping 16%. Nine countries did not import any cotton yarn from India this July and they had imported yarn worth US$1.13 million in July 2018. However, they replaced by 12 other countries which imported yarn worth only US$0.70 million.

Iran, Nepal and Brazil were among top fastest major importers of cotton yarn in July while Cambodia significantly reduced its imports compared to last year.

Source: Fibre To Yarn Export Statistics – India report