Since February, Gujarat’s cotton exporters have noticed an unexpected increase in demand from Turkey and Europe for yarn.
Turkey is now importing Indian cotton because, according to trade analysts, the sector that is most negatively impacted by the terrible earthquake in Turkey is the textile spinning industry.
Similar to how Asia imports cotton from India because Europe is unable to import cotton from Turkey. Turkey and Europe have historically accounted for 15% of India’s total cotton exports, but over the last two months, their percentage has risen to 30%.
“The last year was quite difficult for the Indian textile business since our cotton prices have remained higher,” said Rahul Shah, co-chairman of Gujarat Chamber of Commerce and Industry’s (GCCI) textile taskforce. than the prices paid elsewhere. But now that we have a big harvest, our cotton prices are comparable to those on the global market.”
Said he, “In December and January, we received solid orders for yarn from China. There is currently a substantial demand from Turkey and Europe. Turkey is now purchasing cotton yarn from India after the earthquake wrecked several of its spinning facilities there. Orders from the European nations have also been lodged with us. The demand from Turkey and Europe now makes about 30% of all exports, up from 15% previously.”
India shipped 485 million kg of cotton yarn instead of 1,186 million kg over the same time period in the previous year, a 59% decrease in exports of cotton yarn.
Said he, “the cost of cotton yarn has decrease from Rs. 275 per kg to Rs. 265 per kg. Similar to how costs for cotton have decreased to Rs. 60,500 per candy (356 kg). A stable price for cotton will increase demand.
