Cotton exporters in Gujarat have been witnessing an unexpected rise in yarn demand from Turkey and Europe since February.
This, as trade experts believe, is due to the devastating earthquake hitting Turkey and and hurting the textile spinning sector in the country resulting in the increase in imports of Indian cotton.
In a similar way, since exports of cotton from Turkey have stopped, Europe is also importin cotton from India. The share of these regions in India’s cotton exports has jumped in the past two months from 15 per cent to 30 per cent.
Rahul Shah, the co-chairman of Gujarat Chamber of Commerce and Industry (GCCI) textile taskforce, said, “The past one year was very difficult for the Indian textile industry because our cotton prices have remained higher than the international prices. However, now our cotton prices are on a par with the international prices, and we have also seen a good crop.”
He added, “We received good orders for yarn from China in December and January. Now, there is significant demand from Turkey and Europe. The earthquake destroyed many spinning factories in Turkey, so they are now buying cotton yarn from India. The European countries have also placed orders with us. The demand from Turkey and Europe accounts for 30 per cent of total exports from earlier 15 per cent.”
Cotton yarn exports from India went down by 59 per cent from April 2022 to January 2023 with exports of 1,186 million kg in the previous year period went down to 485 million kg. Cotton yarn exports reduced to 31 million kg in October 2022, but increased to 68 million kg in January, which was highest after April 2022.
Jayesh Patel, the vice president of Spinners’ Association of Gujarat (SAG), said, “Spinning mills across the state are functioning at 100 per cent capacity due to the steady demand. The inventory is empty in the value chain and in the next few days, we will see good demand.”
He added, “Cotton yarn prices have come down to Rs 265 per kg from Rs 275 per kg. Similarly, cotton prices have come down to Rs 60,500 per candy (356 kg). Steady price of cotton will generate better demand.”
