India Suddenly Stops Cotton Yarn Export Registration Export Enterprises from Concern

After the registration of the 730,000-ton cotton yarn export contract was completed, the Indian government announced the suspension of cotton yarn export registration. In recent days, the textile industry reacted differently.

In 2010, the price of Shangkar-6 cotton rose to 44,000 rupees/candy (356 kilograms), compared to the price of 29,000 rupees/candy in the same period of last year and the price of cotton yarn (40S) rose to 250 rupees/kg. In contrast, the same period last year was Rs 150/kg.

The Tirupur Exporters Association, Sakthivel, said that the ban on cotton yarn exports will reduce the price of cotton in the domestic market, increase the supply of cotton yarn, and ease pressure on downstream garments, manual power loom, and finished product companies.

Although domestic cotton yarn consumers and knitted garment manufacturers all welcome the suspension of cotton yarn export registration, the yarn mills think that the government's decision is very bad.

An industry expert said that the government’s decision will send a wrong signal to the international market. In the past 15 years, India's cotton yarn exports accounted for 19-21% of cotton yarn production, and domestic industries have no ability to digest the 20% cotton yarn production. Suddenly stopping the registration of cotton yarn exports will destroy the entire value chain. Not only affects the yarn price, but also affects the price of raw cotton.

The expert said that the government should wait until the export figures come out before making a decision. According to the report of the Mumbai Textile Commissioner's Office, India only exported 45.7 tons of cotton yarn. Even if 300,000 tons of cotton yarn is exported in the next three months, it will not exceed 750,000 tons. However, the sudden suspension of export registration will affect the continuity of Indian cotton yarn export business.