India’s cotton yarn shipment falls 32 per cent in Jan.-May ’23; leaves exporters worried!

India’s cotton yarn exports have continued declining in January-May ’23 period, signaling an acute shortage in demand.

The country has witnessed a drop of 32 per cent in cotton yarn export in the said period on a Y-o-Y basis clocking US $ 1.32 billion in revenue as compared to US $ 1.95 billion in revenue in the same period of the prior year, as per data released by Ministry of Commerce and Industry, India.

However, particularly in May ’23, there were signs of slight recovery as the cotton yarn exports got a boost of 12.73 per cent on a Y-o-Y basis to US $ 268 million.

The cotton yarn shipment to Bangladesh – India’s largest export destination in the segment – dropped by 60.42 per cent to US $ 364.44 million in Jan.-May ’23 period, while shipments to the Chinese market saw a massive recovery of 174.90 per cent to US $ 229.65 million.

On the other hand, cotton yarn shipments to Egypt, Portugal, and Peru have tumbled by 26.40 per cent, 3.42 per cent, and 25.36 per cent on a Y-o-Y basis, respectively.

Even if there are signs of positivity in May ’23, it’s difficult to predict if the positive trajectory will continue in the subsequent months which is why uncertainty is looming large amongst the cotton yarn exporting fraternity of the country.

Source: Apparel Resources