For the textile mills in the region, cotton yarn exports have slowed down in February-March because of drop in demand.
Industry sources say that on an average 120 million kg of cotton yarn was exported a month from the country for 10 months from April last year. Textile mills say that it reduced in February and March.
China had increased purchase in December and January and slowed down in February.
Exporters are also facing a drop in price. Further, value of rupee against the dollar is strengthening and that of the Chinese currency is weakening.
The country is looking at export of 1,400 million kg of cotton yarn this year and it had exported 1,200 million kg in the first 10 months of the fiscal.
The industry had done well during the first 10 months of the year. Though the demand has not fallen sharply, it has slowed down in February and March.
It might revive in April or after the elections.
Cotton prices are around Rs. 42,000 a candy and textile mills that are buying cotton at this price, are finding the yarn rates unviable.
Demand in the international and domestic markets continues to be good for garment and home textile industry and this is expected to boost the demand for yarn in the coming months. Yarn prices are expected to start moving up. There is a demand at lower prices now, the sources say.