According to the study conducted by the Textiles Export Promotion Council, (Texprocil), cotton yarn exports from India are expected to meet their yearly targets in spite of the high raw cotton prices and seasonal fluctuations that are usually observed during April every year.

Texprocil study show that cotton yarn exported by India in the first 10 months (April – January) 2013-14 fiscal year is 1,089 mn kgs valued at US$ 3.75 billion. The full fiscal year export is estimated at around 1,350 mn kgs valued at US$ 4.70 billion. The demand for premium quality of Indian yarn from the international markets will ensure India meets its export targets.

There has been drop in the exports of cotton yarn for three consecutive years in the month of April, as cotton prices temporarily escalate during this month. The same trend has been noticed in the year 2014 as well. Compared to international prices, cotton prices in India are higher for yarn upto 40s count.

Since China is one of the main importers of Indian cotton yarn, an increasing anxiety in the industry has been observed owing to the recent developments in the cotton policy of China. There is major discrepancy between the prices of Chinese and Indian cotton at present with Indian yarns being sold at much lower prices.

According to Manikam Ramaswami, chairman of Texprocil, even though the price difference between Chinese and international cotton has reduced substantially, exports from India has always be good due to high quality of cotton produced by Indian mills. The industry need not fear seasonal fluctuations and drop in yarn exports. Nevertheless, margins on export are highly dependent on price parity with the prices of cotton in the international market.