India's Exports Of Cotton Yarn Are Affected By The Economic Crisis &Nbsp; Domestic Demand May Rebound From September.

India is the largest in the world. Cotton yarn supply The annual output of the country is usually 20-25% for export. According to the textile industry, India may produce about 3 billion 600 million kilograms of cotton yarn in the current fiscal year ending March 2012.

Domestic demand is likely to resume from September, as large orders will begin to emerge from the holiday season in October. However, as long as global financial uncertainty still exists, some buyers will wait for prices to continue to fall, so exports can not be significantly recovered, said Nair, Secretary General of the India textile industry alliance. However, he added that it is not too early to predict the export situation accurately this year.

Global demand for cotton yarn has declined since April, following a general decline in commodity prices. trend The US and EU economies have been recovering from the 2008 financial crisis. fragile Its vulnerability is greater than expected, so market anxiety is increasing.

Since then, the domestic prices of some of the best cotton varieties have also dropped by about 40%, following the international trend. China, Korea, Hongkong and Bangladesh are the main markets for the export of cotton yarn in India. So far this year, India has exported about 65 million kilograms, the same as last year, though domestic manufacturers have huge inventories.

In May, thousands of spinning mills went on strike and then cut production. They asked for export incentives to reduce their huge stocks and restore their competitiveness in the international market with competitors such as China and Pakistan.

The price of domestic yarns is high after these mills buy high priced cotton. Plunge That led them to be caught off guard. They sell yarn at home without profit and huge losses.

Government once limit 2010-11 years exported 720 million kilograms of cotton yarn, but then Revoke The export restriction is due to the government's expectation that domestic output will increase with the increase of cotton production. India expects cotton in the next market year (to September 2012) to have a bumper harvest for second consecutive years, because the planting area is enlarged and rainfall covers a wide area. In 2010-11 years, India produces 32 million 500 thousand bales of cotton.

Clothing manufacturers have lobbied for the export of yarn in fiscal year 2011-12 to 600 million kilograms to ensure adequate supply.