Demand from China Boosts Cotton Consumption in India
Rising demand for Indian cotton yarn in China has strengthened cotton consumption within India. There is particularly strong demand in China for coarser yarn counts, such as 16s and 21s, which are primarily used in heavy home textiles and knitted fabrics.
According to the latest USDA report on the global cotton market and trade, India's cotton yarn exports have risen by 8% so far in the current marketing year. In the first ten months, exports of Indian cotton yarn to China nearly tripled, and India's share of China's yarn imports surged from 7% to 21%. A weaker rupee and the competitive pricing of Indian yarn have also benefited exports.
Sharad Khemka, Managing Director of Kolkata-based S.P. Yarns, noted that purchases of Indian yarn have increased due to higher prices for local yarn in China. While China continues to buy Indian yarn, the recent rise in domestic cotton prices poses a challenge for exporters. India faces competition from Vietnam in the Chinese market, whereas Pakistan's market share has declined compared to the past.
Dheeraj Khetan of Hyderabad-based Shri Salasar Balaji Agrotech stated that exports of Indian cotton yarn to markets like China and Bangladesh have grown. Buyers in China are prioritizing yarn over raw cotton because Indian prices are competitive.
According to the USDA, India's cotton consumption is projected to reach a record 26.5 million bales in 2026-27, up from 26 million bales in 2025-26. Demand has been bolstered by government measures, including import duty concessions and support for the textile industry.
Globally, cotton consumption is also expected to rise by 1 million bales to 122.9 million bales—a six-year high—driven primarily by increased demand in China, India, Indonesia, and Vietnam.
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