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Related Keywords: China, Combed cotton yarn, cotton yarn demand drop, Indian cotton yarn producer, Indian textile industry, largest importer, Southern India Mills Association, TUFS

Indian cotton yarn producers facing a tough time as the demand for cotton yarn from China, the largest importer of Indian yarn has slowed down since April due to which exports have dropped and subsidies under technology upgradation fund scheme (TUFS) have been overdue for the past few months.

Mills have also not received interest subsidies under TUFS since December. For investments to the tune of Rs 65,000 crore made by over 1,000 units since 2010, interest subsidy of around Rs 3,000 crore is pending. This has put further pressure on the working capital of the mills

Related Keywords: CITI, Confederation of Indian Textile Industry, D K Nair, SIMA, Southern India Mills Association, T Rajkumar, yarn export to china, Yarn import in china

China is now buying lesser yarn from India, putting Indian export under pressure. Moreover, buyers in China are insisting on lower pricing citing that Indian rupee has strengthened against US$. Over the past one month, Indian yarn export price to China has declined 6- 7 per cent and is hovering around US$3.30 a kg. Until January, China was importing about 110 -120 million kg yarn per month on an average.