High demand for yarn from earthquake-hit Turkey and Europe | Ahmedabad News – Times of India
AHMEDABAD: Gujarat’s cotton exporters have been witnessing an unexpected rise in demand for yarn from Turkey and Europe since February.
Trade experts believe that the textile spinning sector is hurt the worst due to the devastating earthquake in Turkey and therefore the country is now importing Indian cotton.
Similarly, since Europe is also not able to import cotton from Turkey, it is importing cotton from India. The share of Turkey and Europe in India’s total cotton exports has remained around 15%, but in the past two months, it has increased to 30%.
Rahul Shah, the co-chairman of Gujarat Chamber of Commerce and Industry (GCCI) textile taskforce, said, “The past one year was very difficult for the Indian textile industry because our cotton prices have remained higher than the international prices. However, now our cotton prices are on a par with the international prices, and we have also seen a good crop.”
He added, “We received good orders for yarn from China in December and January. Now, there is significant demand from Turkey and Europe. The earthquake destroyed many spinning factories in Turkey, so they are now buying cotton yarn from India. The European countries have also placed orders with us. The demand from Turkey and Europe accounts for 30% of total exports from earlier 15%.”
India’s cotton yarn exports reduced by 59% from April 2022 to January 2023 as it exported only 485 million kg against 1,186 million kg in the corresponding period the previous year.
Cotton yarn exports reduced to 31 million kg in October 2022, but increased to 68 million kg in January, which was highest after April 2022. Industry experts said that the exports in February and March have been encouraging.
Jayesh Patel, the vice president of Spinners’ Association of Gujarat (SAG), said, “Spinning mills across the state are functioning at 100% capacity due to the steady demand. The inventory is empty in the value chain and in the next few days, we will see good demand.”
He added, “Cotton yarn prices have come down to Rs 265 per kg from Rs 275 per kg. Similarly, cotton prices have come down to Rs 60,500 per candy (356 kg). Steady price of cotton will generate better demand.”
Trade experts believe that the textile spinning sector is hurt the worst due to the devastating earthquake in Turkey and therefore the country is now importing Indian cotton.
Similarly, since Europe is also not able to import cotton from Turkey, it is importing cotton from India. The share of Turkey and Europe in India’s total cotton exports has remained around 15%, but in the past two months, it has increased to 30%.
Rahul Shah, the co-chairman of Gujarat Chamber of Commerce and Industry (GCCI) textile taskforce, said, “The past one year was very difficult for the Indian textile industry because our cotton prices have remained higher than the international prices. However, now our cotton prices are on a par with the international prices, and we have also seen a good crop.”
He added, “We received good orders for yarn from China in December and January. Now, there is significant demand from Turkey and Europe. The earthquake destroyed many spinning factories in Turkey, so they are now buying cotton yarn from India. The European countries have also placed orders with us. The demand from Turkey and Europe accounts for 30% of total exports from earlier 15%.”
India’s cotton yarn exports reduced by 59% from April 2022 to January 2023 as it exported only 485 million kg against 1,186 million kg in the corresponding period the previous year.
Cotton yarn exports reduced to 31 million kg in October 2022, but increased to 68 million kg in January, which was highest after April 2022. Industry experts said that the exports in February and March have been encouraging.
Jayesh Patel, the vice president of Spinners’ Association of Gujarat (SAG), said, “Spinning mills across the state are functioning at 100% capacity due to the steady demand. The inventory is empty in the value chain and in the next few days, we will see good demand.”
He added, “Cotton yarn prices have come down to Rs 265 per kg from Rs 275 per kg. Similarly, cotton prices have come down to Rs 60,500 per candy (356 kg). Steady price of cotton will generate better demand.”
