India’s yarn exports to be one third of its production in 2013-14, driven by import by China. India’s dependence on China has increased in recent past as it accounted for about 33 per cent of Indian cotton yarn exports as against about four per cent in 2007-08, said a report of rating agency ICRA.
With improved export demand, Indian spinners have witnessed improved capacity utilization levels, which stood at record high levels of about 90 per cent in 2012-13.
Increased export demand, stability in international cotton and yarn prices and depreciation of the Indian rupee led to improved realizations for Indian spinners, which averaged about Rs. 204 per kg in 2012-13 and increased to about Rs. 220 per kg by September 2013 due to further depreciation in rupee.
The cotton prices averaged Rs. 97 per kg in second-half of FY13 as against Rs. 102 per kg in the second-half of FY12.