Increase in imports of cotton yarn since June this year has raised concerns among the domestic textile mills.
According to available data, cotton yarn imports in June this year had almost trebled over the year-earlier period. It was several fold higher in July as against July 2021. The imports stood at 1.15 million kg in June this year (0.44 million kg) and 4.54 million kg in July (0.17 million kg).
Indian textile units generally import speciality yarns. The recent hike in cotton yarn imports are said to be largely from Vietnam. There are multiple factors for the increase in imports. Indian cotton and yarn prices went up since November last year and this was one of the reasons, said Siddhartha Rajagopal, Executive Director of Cotton Textiles Export Promotion Council. However, cotton yarn importers need to be cautious as the U.S. has banned textiles that contain cotton originating from the Xinjiang province of China. The yarn imports are likely to reduce now as Indian cotton prices have declined, he added.
According to M.A. Ramasamy, president of Powerloom Development and Export Promotion Council, Indian cotton yarn prices were not only high but also volatile. This resulted in uncertainty for weaving units. The units imported yarn whenever it was cheaper than domestic yarn.
Ravi Sam, chairman of Southern India Mills’ Association, said India produced almost 340 million kg of cotton yarn a month and imports are relatively less. Yet, it is a matter of concern and the government should remove the import duty on cotton so that both, cotton and yarn prices are under control, he said.