India’s yarn exports fell 30 per cent in value terms in January to February 2020 compared to last year. Reason: COVID-19. There was a sharp fall in cotton yarn exports to China, Iran, Korea and Vietnam. China accounts for nearly one-third of Indian yarn exports. As for the performance of the cotton spinning industry, it has already been severely constrained in the current fiscal year amid multiple headwinds, including a demand slowdown in the domestic as well as export markets and unfavorable raw material prices. While the industry was pinning hopes on a gradual recovery in yarn exports from the fourth quarter onwards, aided by the softening of domestic cotton prices, recent developments could prolong tough times for Indian spinners.

Around 11 countries buy 41 per cent of India’s cotton yarn exports. India’s garment exporters depend heavily on China for their import requirements. They are exploring other sources like Japan for woven fabric made out of artificial filament yarn, slide fasteners and parts, sewing machines, furniture, bases and covers, and sewing machine needles.

Another opportunity for Indian exporters is that buyers in the US and Israel are interested in sourcing from India. They had been buying these products from China so far.