According to foreign news on January 30, the rating agency ICRA stated in a report that India’s cotton yarn exports are expected to increase significantly by 85-90% in fiscal year 2024 due to the expected shift in China’s purchasing preferences. , and improved spring and summer demand in the United States and the European Union, which will boost demand from domestic apparel and home textile manufacturers.
However, cotton prices have slowed significantly, resulting in a decline in cotton yarn realized prices, which may result in a year-on-year decline of 8-9% in revenue to 33,465 rupees in fiscal 2024.
Cotton yarn exports usually account for 25-35% of India’s cotton yarn production, with the remainder contributed by the domestic market. Although cotton yarn exports fell significantly (53%) in FY2023, the trend has reversed in the current fiscal year.
ICRA estimates that India’s cotton yarn exports will grow by 85-90% year-on-year in fiscal year 2024. Bangladesh, China, and Vietnam account for 60% of these exports.
As the Asian market accounts for 70% of Indian yarn exports, the Red Sea conflict is not expected to have an immediate impact on Indian yarn exports. However, the continuation of the conflict will have a direct impact on clothing export volumes, thereby affecting domestic and export demand for cotton yarn and its realization. </p
