Cotton textile exports to China crash by 74% in Q1

  • 04-Aug-2020
  • Cotton textile exports to China crash by 74% in Q1

In a sign of troubled trade relations with China, India’s export of cotton textile products to China has seen a whopping 74% decline to touch $90 million during the April-June quarter this year.

China’s share in India’s total exports of cotton textile products has also halved to 6.9% during the quarter as against 14% in the corresponding quarter last fiscal. During Q1 last year, India’s export of cotton textiles to China stood at $346 million, according to data available with The Cotton Textiles Export Promotion Council (TEXPROCIL).

 “Recently, Indian and Chinese governments carried out reciprocal measures like detailed shipment inspections at ports, delaying clearing of goods, thereby also contributing to decline in exports,” K V Srinivasan, managing director, Premier Mills Pvt Ltd told DH. 

Substitution of textile imports from China as well as contemplation of anti-dumping duties on certain Chinese products may have an impact on exports of Indian cotton textiles, he said.

China is a leading importer of raw cotton and cotton yarn from India and also the largest exporter in the world. “Exports to China during the first quarter declined drastically as compared to the corresponding quarter the previous year,” Kirti Shah, managing director, Textiles World said.

Overall, cotton textile exports during the first quarter declined 47% to $1.29 billion  against $2.42 billion in the same quarter last year.

One of the main reasons for the decline was supply chain disruptions. “Delays in documentation, especially Certificates of Origin in countries like China, Vietnam, Thailand and Malaysia also delayed deliveries, hitting exports,” Siddhartha Rajagopal, executive director, TEXPROCIL said. Delays at ports owing to Covid protocols quarantine also led to the decline, he said.


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