Xinjiang province in China produces over 70% of the country’s total cotton production. However, the province has faced lower cotton crop production in 2023, resulting in China placing a large order for cotton yarn from India. China’s recent order of nearly 5,000 tons of cotton yarn from India has sent ripples across the textile industry. Here’s what you need to know:
According to industry estimates, India’s cotton production in 2023 will be around 34 million bales. Cotton rates are estimated to be around Rs 55,000 per candy level. Additionally, yarn rates are estimated to fall to Rs 245 per kg from Rs 255 per kg (current price). This drop in yarn prices is expected to lead to increased export demand for India as prices become more aligned with international rates.
China’s recent order of cotton yarn from India is a positive development for the textile industry, which was experiencing a slump due to low demand. This order is expected to provide a much-needed boost to the spinning mills in Gujarat and improve the country’s export demand. With the predicted drop in yarn prices, India is likely to witness a surge in export demand, leading to a much-needed revival of the textile industry.