Textiles export dives in April 20 as Covid shuts India

Basic textiles export comprising fibres, spun and filament yarns shipment plunged 80% YoY in April 2020, both in terms of US$ and INR worth US$112 million or INR840 crore, accounting for about 1.1% of total merchandise exported from India during the month. The sharp decline was mainly due to the nationwide lockdown imposed to contain spread of coronavirus.

Nevertheless, basic textiles export has been a non-performer for many months now. The performance was only aggravated by the lockdown.

The Lockdown

Despite the lockdown, 44 ports were seen handling textile cargoes during the month as against 68 last year and around 75 normally. Cargoes were handled for all days at major ports of JNPT and Mundra and Hazira at 28 days operation.  Pipavav, Tuticorin Sea, Mandideep, Chawapayal ICD, Kanech ICD and Sahnewal GRFL ICD operated for more than two-three weeks during the month. Rest were operated for about a week.

We are intentionally refraining from analyzing year on year comparison (April 2020 with April 2019) since April 2020 was an abnormal with values abysmally low and outliers to the trend. It is also most likely that May 2020 will extend similar performance as the nationwide lockdown continues but partially eased on 18 May.

Spun yarn export dwindles

Spun yarns shipment totaled just 24 million kg worth US$70 million or INR529. The unit value realization of all types of spun yarn averaged US$2.88 per kg. Bangladesh was the largest market for spun yarns, topping both in terms of volume and value. China followed about 20% of total value.

Cotton yarn export was 21 million kg worth US$60 million (INR449 crore). These were headed to 55 at an average price of US$2.90 a kg, down US cents 4 from previous month and US cents 11 down from a year ago. China reemerged as the top cotton yarn market, followed by Bangladesh, Vietnam, Portugal and Sri Lanka.

100% man-made fibre yarns exports of 1.4 million kg, comprised 0.5 million kg of acrylic yarn, 0.55 million kg of viscos yarn and 0.3 million kg of polyester yarn. Viscose yarn was worth US$1.6 million or INR12 crore exported at an average price of US$2.92 per kg in April to 15 countries. Of these, the major market was UAR followed by Belgium, Paraguay and Turkey. Polyester spun yarns export was worth US$0.6 million exported to 13 countries at average unit price of US$2.25 a kg. Morocco was the largest importer of polyester yarn, followed by Bangladesh and USA.

Blended spun yarns worth US$6.6 million were exported in April, including 1.6 million kg of PC yarns and 0.5 million kg of PV yarns. Bangladesh was the largest importers of PC yarn from India followed by Brazil while Iran was the single largest importer of PV yarns from India followed by Turkey.

All kinds of filament yarns shipment totaled just 8 million kg, valued at US$11 million or INR85 crore.

Cotton Shipment minisculed

Cotton fibre shipment in April was only of 45 thousand bales worth INR86 crore or US$11 milion. This takes the total export closer to 38 lakh bales worth US$1,029 million in the first seven months of 2019-20 marketing season. Bangladesh was the largest market for Indian cotton export during April, followed by China, Indonesia and Vietnam.

Export price realisation averaged INR113 a kg or US cents 68.26 per pound during April. This was higher compared to Cotlook A index, the global spot price benchmark and also higher than domestic spot price for benchmark Gujarat Shankar-6. During the month, Cotlook averaged US$64.13 per pound and Shankar-6 at US cents 61.43 per pound, making Indian cotton uncompetitive in global market.

Source: Fibre To Yarn Export Statistics – India report