Since February, cotton in Gujarat, India, has been welcomed by Türkiye and Europe. These cotton are used to produce yarn to meet their urgent demand for yarn. Trade experts believe that the earthquake in Türkiye caused great damage to the local textile sector, and the country is now importing Indian cotton. Similarly, Europe chose to import cotton from India because it was unable to import cotton from Türkiye.
The share of Türkiye and Europe in India’s total cotton exports has been around 15%, but in the past two months, this share has increased to 30%. Rahul Shah, co chair of the Textile Working Group of the Gujarat Chamber of Commerce and Industry (GCCI), said, “The past year has been very difficult for the Indian textile industry because our cotton prices have been higher than international prices. However, now our cotton prices are in line with international prices, and our production is also very good.”.
The chairman of GCCI added: “We received yarn orders from China in December and January. Now, Türkiye and Europe also have a lot of demand. The earthquake destroyed many spinning mills in Türkiye, so they are now buying cotton yarn from India. European countries have also placed orders with us. The demand from Türkiye and Europe accounted for 30% of the total exports, compared with 15% previously.” From April 2022 to January 2023, India’s cotton yarn exports decreased by 59% to 485 million kilograms, compared to 1.186 billion kilograms in the same period last year.
Indian cotton yarn exports decreased to 31 million kilograms in October 2022, but increased to 68 million kilograms in January, the highest level since April 2022. Cotton yarn industry experts said that the export volume increased in February and March 2023. Jayesh Patel, Vice President of the Gujarat Spinners Association (SAG), said that due to stable demand, spinning mills throughout the state are operating at 100% capacity. The inventory is empty, and in the next few days, we will see good demand, with the price of cotton yarn dropping from 275 rupees per kilogram to 265 rupees per kilogram. Similarly, the price of cotton has also been reduced to 60500 rupees per kand (356 kilograms), and a stable cotton price will promote better demand.
Post time: Apr-04-2023