India'S Cotton Yarn Exports Dropped By 33%

In the first two months of this fiscal year, because of the sluggish demand,

Down 33%.

The total number of exports registered by the General Administration of foreign trade (DGFT) in April to May is 134 million 550 thousand kg, and the actual shipment volume is estimated to be 1 to 11 billion kg. Compared with the same period last year, the shipment volume was 1.5-1.6 billion kg.

Secretary General of India Textile Industry Federation

D K Nair said that the actual shipment usually has a lag period of 15 days, so we think the total shipment quantity may exceed 110 million kg.

Foreign cotton

The demand for cotton yarn has dropped sharply, partly due to the government's policy.

Last year, the government set an export limit of 720 million kilograms, and the ginning plants carried out for 10 months. They expected the government to extend the execution time, but the government did not extend the execution time.

Therefore, there was little export in the last two months (February and March).

The importers of Bangladesh and China have to choose synthetic yarns, which are the main destinations of India cotton yarn in two countries.

In the past two months,

Plunged 60%.

Benchmark 42s cotton yarn traded at 170 rupees / kg on Tuesday.

The same is true in overseas markets.

The price of benchmark 30s cotton yarn in Bangladesh dropped from $7 / kg in February to march to $5 / kg.

Bhiwandi, located near Mumbai, is a cotton yarn production center. The power loom company here controls production capacity by 40% in order to avoid increasing inventory.

At the beginning of this year, the price was more than 240 rupees / kg. Enterprises expected prices to continue to rise and stockpiled a lot of stocks.

Now they are reducing inventories, and domestic supplies have increased substantially in the past two months, far exceeding demand.

The cotton mill is optimistic that the demand of domestic and foreign textile mills will resume after the monsoon season, and enquiries and orders will soon appear.

Although the market looks pale, they look forward to the early recovery of cotton yarn demand.

The sharp fall in cotton prices has also forced the yarn market to fall.

Just a quarter ago, cotton price was 63000 rupees / candy (356 kg), and now it has dropped to 40000 rupees / candy below.