Indian Cotton Yarn Exports Gain Momentum Amid Global Conflict
Rajkot/Ahmedabad: The ongoing conflict in the Middle East has disrupted global supply chains and fuel supplies, placing increased pressure on numerous factories across India. However, for the cotton yarn industry, this situation appears to be transforming into an opportunity, as demand from China has surged rapidly.
India, the world's second-largest cotton producer, has emerged as a key supplier to China. The war has disrupted trade routes and caused delays in cotton shipments from the U.S. and Brazil, compelling China to seek alternative sources. Consequently, yarn imports from India have risen. Furthermore, with the Rupee depreciating by approximately 7% against the Yuan, Indian products have become more affordable for Chinese buyers.(sis)
According to Ripal Patel, Managing Director of Fiortex Cotspin—a spinning mill based in Gujarat—the company's export order book has witnessed a 40% increase, and production has now reached 100% capacity. Orders extending through June have already been booked.
According to industry experts, since November, India has been shipping approximately 1,500 containers of cotton yarn to China every month—up from a previous volume of 300 containers—marking a fivefold increase. The impact on polyester supplies has further bolstered the demand for cotton.(sis)
However, while mills in Gujarat are benefiting from a geographical advantage, units in Tamil Nadu are facing competitive challenges due to higher transportation costs.
