One of the countries having a voice in the world textile, India quadrupled its yarn exports. The exports made in the period covering the first nine months of 2012 reached 222 052 tons. According to a statement by the Ministry of Textiles in India, the exports of 77 688 tons in September last year have quadrupled. India, however, continued its position as the second largest cotton yarn exporter to China after Pakistan, India's largest cotton importer, this year again. Therefore, it maintained its position as the second market with 222 052 tons of yarn imports from India and China. According to the Indian Directorate General of Foreign Trade (DGFT), 827.68 million kilograms of yarn exports last year became 461.52 million kilograms in the first nine months.
The record was broken in the cotton exports from Pakistan to China. Having purchased 202,310 tons of cotton yarn from Pakistan the previous year, China made 391,556 tons of purchase in the same period of 2012. It made a tremendous impact that China made imports in the international arena this much. Professionals stated that such an increase in demand was to save labor costs.
In addition, the decline in demand for cotton purchase in China is expected to affect India in a negative way. According to the Cotton Advisory Board (CAB), the 12.8 million bales of cotton exports from India to China are expected to fall to 7 million bales in 2012-13. India, whose around 65 per cent of cotton exports are shipped to China, is expected to be affected by the diminishing demand. Making yarn imports instead of cotton as a raw material, China focused on value-added products and this enlivened the markets. While China’s imports of cotton yarn are expected to increase, cotton prices in the country are expected to increase 20 cents per kilogram.
