As of 2022, India’s cotton yarn exports to China, historically one of its largest importers, had been steadily declining, with Bangladesh taking the lead.
However, in 2023, the situation has undergone a dramatic reversal. The latest cotton yarn shipment data of India shows China has imported 411.12 per cent more cotton yarn from India from January to July ’23, valuing US $ 440.90 million as compared to US $ 86.26 million in the same period of the prior year.
Taking a closer look at the data, the Apparel Resources team uncovered an astonishing 8,888.97 per cent growth in China’s cotton yarn imports from India in July ’23 alone, reaching a substantial US $ 114.55 million in imports during that month, compared to a meager US $ 1.27 million in the corresponding period of the previous year.
Markedly, China surpassed Bangladesh in cotton yarn imports from India during July ’23 as Bangladesh imported yarns worth only US $ 81.73 million from India, falling by 1 per cent on a Y-o-Y basis.
Cumulatively, Bangladesh still races ahead of China with US $ 524.46 million worth of cotton yarn imports from India, although this reflects a significant decline of 51.89 per cent during the January to July ’23 period.
Turkey – the third largest importer of Indian cotton yarn – also noted a significant increase of 32.18 per cent during the first 7-month period of 2023 with an import value of US $ 117.47 million.
Though the cotton yarn shipment in China and Turkey has increased, the overall cotton yarn export of India, valued US $ 1.95 billion, has fallen by 16.68 per cent on a Y-o-Y basis during the January to July ’23 period – thanks to decline in Bangladesh and other major markets such as Egypt, Peru, Portugal and Vietnam.
While the dwindling market share in Bangladesh may raise concerns for Indian cotton yarn exporters, who are grappling with the challenge of managing the balance between domestic and export markets, there is a silver lining to the situation. The resurgence of demand in China serves as a welcome development for these exporters.
