1,082 million kg of cotton yarn exported between April 2013 and January 2014
Cotton yarn exports from the country in 2013-2014 are expected to be about 1,350 million kg, according to the Cotton Textile Export Promotion Council (Texprocil).
Chairman of the council Manikam Ramaswami has said in a press release recently that 1,082 million kg of cotton yarn was exported between April 2013 and January 2014. Every year, the yarn exports drop in April because the volume of exports in the previous months is high and cotton prices usually go up in April.
The domestic textile mills are concerned because of the recent developments in the Chinese cotton policy and since China is the largest importer of cotton and cotton yarn from India.
In March and April, price of cotton in India was higher than the international price for yarn up to 40s count. And, India was importing cotton.
Price of Indian cotton yarn after payment of duty and taxes in China was lower than the domestic price of yarn in China.
Given the quality of Indian yarn, there is no reason for Indian textile mills to worry of a drop in yarn exports as it is only a seasonal drop and will improve.
Even if the difference between international and Chinese domestic price for cotton yarn will narrow down, the demand for yarn from India will be good, he said.