India’s cotton yarn exports declined by 42 per cent from April 2022 to August 2022. The decline was majorly contributed by the top export destinations Bangladesh and China where exporters saw a drop of 36 per cent and 93 per cent respectively. Cotton yarn shipment from India to Portugal too came down drastically by 56 per cent. On the other hand, Indian cotton yarn exports to Egypt rose by five per cent while exports to Italy were up by 132 per cent.

While India’s yarn exports showed a downward trend this year, its imports from Vietnam have jumped.The far-eastern country was earlier one of the major markets for Indian cotton yarn. The scarcity of cotton along with a comparatively higher price in India has resulted in a shift in its trade dynamics with Vietnam.

Cotton prices in India are still ruling higher than those in the international market.India’s yarn exports to Vietnam dropped to $6.485 million in July 2022 from $18.084 million in February 2022. India’s yarn exports to Vietnam had registered growth during the preceding years.

But fiscal year 2022 had proved to be a great one for Indian cotton yarn exporters as they managed to tap 92 per cent growth on a yearly basis.