Texprocil Study
Finds Robust Figures For Cotton Yarn Export From India, Outlook Bright
- Cotton Yarn exports meeting their target
- During the 10 month period of April’13 – Jan’14, India exported 1082 million kgs of Cotton Yarn worth US $ 3.75 billion. Full year figure likely to be at 1350 mn kgs valued at US $ 4.70 billion
A study conducted by
The Cotton Textiles Export Promotion Council,
(Texprocil) has
revealed that India’s Cotton Yarns exports are meeting their targets barring
the seasonal fluctuations generally witnessed every April and inspite of high
raw cotton prices. Statistics
revealed by TEXPROCIL show that India exported 1,082 mn kgs of cotton yarn
valued at US$ 3.75 billion in the first 10 months (April – January) of fiscal
year 2013-14. It is estimated that cotton yarn export for the full fiscal year
2013-14 would be around 1,350 mn kgs valued at US$ 4.70 billion. The high
quality of Indian yarn is ensuring firm orders for Indian Mills from the
international markets.
Exports
of cotton yarn dropped during last three years in the month of April and it
happened in 2014 too. One of the reasons, in addition to the high year end
exports which cause a drop in April, is the temporary high cotton prices during
this period. Last year as well as this year during the month of March and April
Indian cotton prices have gone above the international prices for cotton upto
40s count. Current Indian prices are higher than international prices and good
quantity imports of 1 1/8 inch cotton are taking place.
There is an increasing anxiety in the
industry due to recent developments in Chinese cotton policy since China is the
major importer of cotton and cotton yarn from India. Presently, the price
difference between Indian & Chinese Cotton is quite high with the Indian
yarn selling at much lower rates. In fact, prices of Indian cotton yarns after
payment of duty and taxes in China are still very much lower than the Chinese
domestic yarn prices
Says Mr
Manikam Ramaswami, Chairman, Texprocil, “Given the better
quality produced by Indian mills there will always be good exports of Indian
yarns taking place, even if the difference between
Chinese cotton prices and international cotton prices narrows down
substantially. Indian mills need not fear a drop in Yarn exports happening
beyond the seasonal fluctuations. However profitability of exports will depend
upon our price parity with International cotton prices.”
Established in 1954 as an autonomous, nonprofit body dedicated
to promotion of exports, TEXPROCIL facilitates the exports from India of Raw
Cotton, Cotton Yarns and Blended Yarns, Woven and Knitted fabrics, Home
Textiles and Technical textiles. The Council provides export promotional
services to over 3,500 members including composite mills, spinning units,
weaving units, knitting units, process houses and merchant exporters who
collectively generate billions of dollars of turnover.
GRAPH
1 - showing
the monthly movement of yarn exports from India for the last three fiscal
years.
GRAPH
2 & 3 – indicating
that the price difference between Indian and Chinese cotton yarn prices is high
No comments:
Post a Comment