Cotton yarn exports decline on low demand from China
COIMBATORE: With China, the largest importer of yarn, reducing its purchases, cotton yarn exports from the Country fell 10.2% year-on-year (y-o-y) to 464 million kgs (mkgs) between April and September this year. Cotton yarn exports advanced by a mere 1.1% y-o-y in value terms to around $1.5 billion during the timeframe.
Exports to China saw the biggest fall in both volume and value terms. Cotton yarn shipments to China plunged 31.9% to 105.9 mkgs between April and September, data with the Union Commerce Ministry showed. Incidentally, cotton yarn exports hit a record $4.5 billion in 2013-14 as spinning mills performed well by taking advantage of various sops including the 2% incremental export incentive,2% interest subvention and 3% focus market incentive.
However, export incentives provided to cotton yarn were withdrawn in 2014. Following this, yarn exports started declining and fell 26% to $3.3 billion in 2016-17. "This policy decision has adversely affected cotton yarn exports to China, the largest importer," said Sanjay Kumar Jain, Chairman, Confederation of Indian Textile Industry (CITI). "China has shifted from India to Vietnam/Indonesia as they have duty free access while Indian yarn carries 3.5% import duty," he said.
Source:- Dailyshippingtimes.com
