India’s yarn exports declined in volume but increased in value during the first half of the current year.

During the period Bangladesh remained the top buyer of all Indian yarn exports with a 32 per cent share, while Turkey stood second with an import share of 11 per cent. Egypt, Portugal and the US were the other three nations among the top five destinations for Indian yarn exports, with a share of five per cent, three per cent and two per cent respectively. Other importers of Indian yarn among the top ten were Vietnam, Peru, China, Italy and South Korea.

The price rise in cotton improved foreign exchange earnings but discouraged export volume.The arrival of the new cotton crop in India beginning in October led to a jump in yarn exports during the second half of the last year.

Indian exporters have asked for raw material security, owing to the spiraling prices of raw cotton and cotton yarn. Another pressing issue is related to RoSCTL. Exporters want the deletion of the condition in the notification issued by DoR for holding the transferee liable for the non- realization / excess availed by the exporter, which will curtail its misuse. Additionally, the new Technology Upgradation Fund Scheme (TUFS) is awaited as the ATUF scheme expired on March 31, 2022.