Cotton Yarn Exports adversely affected in India : CITI

Cotton Yarn Exports adversely affected in India : CITI

Deprived of various policy on export benefits such as MEIS and IES announced for MMF spun yarn and other segments in the textile value chain, India has noted a decline of 10.2 per cent in cotton yarn exports from 517 million kgs to 464 million kgs between April and September last year to the same period this year.  These decisions adversely affected cotton yarn exports from the country, Confederation of Indian Textile Industry (CITI), chairman, Sanjay Kumar Jain said.

China being the largest importer of cotton yarns has shifted its sourcing focus from India to Vietnam or Indonesia as Indian yarn levies 3.5 per cent import duty while they provide duty-free access. It claims that India’s export to China tumble 42 per cent, while it grew by 83 per cent and 14 per cent from Vietnam and Indonesia, respectively, during the 2013-14 to 2016-17 period.

During 2013-14, India exported approximately 4,555 million of yarn due to the advantage of 2 per cent incremental export incentive, 2 per cent interest subvention and 3 per cent focus market incentive collectively helped Indian spinning mills to report good exports. The Government decided to withdraw these benefits meant for cotton yarn without citing any reason for the same in 2014.

During 2016-17, cotton yarn exports declined by 26 per cent to around 3,352 million US Dollar. This happened when more than 3 million spindles and 62,000 rotors spinning capacity were added during the same period.

– Apparel and Textile News, Apparel Talk, Indian Apparel