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Indian Yarn exports to China fall on pricing policy

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Indian yarn exports have come under pressure as China has slowed down yarn imports from the country. China is also offering a lower price for Indian yarn because the rupee has strengthened against the dollar. The Chinese price for Indian yarn has declined by 6 per cent to 7per cent over the past month and is now quoting at $3.30 a kg.

“From February onwards, the Chinese offtake started declining and in March we are seeing a distinct difference in their imports,” said T Rajkumar, chairman, Southern India Mills’ Association.

‘We are expecting yarn exports from India to pick up from May provided the cotton pricing policy is in favour of India,” he added. China had made huge purchase of yarn from India to make towels, T-shirts, jeans and stockings. The country is now focussing on high-value products instead of spinning yarn, which has opened up a huge window of opportunity for Indian suppliers of the raw material.’