Due to this year’s decreased cotton crop production in China’s Xinjiang province, the nation has ordered roughly 5,000 tonnes of cotton yarn from India during the past two weeks. More than 70% of China’s total cotton production is produced in this province.
Given that the majority of the orders would be met by the state’s spinning mills in the next two months, the most recent orders will significantly assist Gujarat’s spinning mills, who have been going through a lean period.
Since Indian cotton prices have been higher than those of other countries for about a year, the export of cotton yarn has decreased. The Xinjiang region of China expects production of 27.5 million bales to be between 10 and 15% lower this year.
Vice-President Jayesh Patel of The forecasts for Xinjiang’s cotton production this year are much lower, according to Spinners’ Association Gujarat (SAG). According to our calculations, China has ordered about 250 20-ton containers. Cotton yarns in counts 20 and 32 account for the majority of orders. Spinning mills in Gujarat will supply a sizable portion of this.
In Gujarat and Maharashtra, the price of cotton per candy (356kg) has decreased to Rs 59,000 and Rs 58,000, respectively, he continued.
Industry forecasts predict that India would produce about 340 lakh bales of cotton this year, weighing 170 kg each. Stock arrival will continue through the end of the season in September because of the sluggish arrival and farmers’ superior keeping capacity, according to Patel. Cotton costs are anticipated to rise to Rs 55,000. We will see increased export demand once yarn prices hit the Rs 245 per kg level from the current Rs 255 per kg level since our rates would be comparable to foreign prices, said Patel.
According to Rahul Shah, co-chairman of the GCCI Textile Taskforce, “China’s cotton yarn demand has grown in the past two weeks due to decreased cotton crop projections. Receiving sizable purchases from China is encouraging for India. Up until two years ago, China accounted for almost 40% of all of our exports; today, that percentage is closer to 15%.
