Cotton yarn export rises in March on falling prices

Cotton yarn export was at 130 million kg worth US$380 million (INR2,630 crore), up 6% from previous year’s level in US$ terms. 77 countries imported cotton yarn from India at an average price of US$2.92 a kg, up US cents 2 from previous month and down US cents 27 from last year. The increase can be attributed to achieving the annual export target of companies and the sharp decline in export prices.

Spun yarns shipment totaled 160 million kg (up 17%) worth US$464 million (up 8%) implying an average unit value realization of US$2.78 per kg, up US cent 1 compared to previous month but down US cents 24 from a year ago average. Meanwhile, the INR against the US$ weakened from INR64.21 to INR69.17 this march, which augurs well for exports.

China, the top importer, bought 50% more cotton yarn from India this March. During the month, the year on year increase was 54% in US$ terms. China was followed by Bangladesh with volume and value declining 29% over the year. Egypt and Portugal were the other major importers of cotton yarn, with former recording 8% increase and latter falling 19%.

Eight countries did not import any cotton yarn from India this March as they had imported yarn worth US$0.85 million in March 2018. However, they were replaced by 11 other countries which imported yarn worth US$0.52 million.

Nepal, Iran, Malaysia, Czech Republic, Thailand and Malaysia were among top fastest importers of cotton yarn in March while Algeria, Greece, Netherlands, Bahrain and Belgium significantly reduced their imports compared to last year.

Combed cotton yarn accounted for 57% of all cotton yarn exported in March, rising 16% year on year. Carded yarn export declined 11% losing its share to 25%. Open ended yarn export jumped significantly by 68% and had a share of 12%.

Most of cotton yarn export were in grey form while dyed yarn just at 0.2% while mélange yarn accounted for about 1%.

Cotton knit yarn volumes increased 20% in March and account for 55% of all cotton yarn exported during the month. Weaving yarn shipment grew 6% and was about 27% of the total.

Source: Fibre to Yarn Export Statistics – India report March 2019