Demand for Indian Cotton Yarn Rises in China and Other Countries

18-Mar-2026 11:23 AM

Mumbai. Due to rising maritime transport costs resulting from the ongoing conflict in West Asia, the demand for Indian cotton yarn has begun to surge in Asian nations such as China, Bangladesh, and Vietnam.

The President of the Cotton Association of India (CAI) states that importers in China are demonstrating keen interest in purchasing Indian cotton yarn. Disruptions in the global supply chain have left China's textile industry grappling with a severe shortage of raw cotton and cotton yarn.

In fact, since shipments under existing import contracts for raw cotton—signed by these nations with other exporting countries—are unlikely to arrive on schedule, these countries are prioritizing the purchase of cotton yarn from India over raw cotton to meet their immediate requirements. This trend could potentially lead to an increase in the domestic demand for raw cotton within India.

The import of raw cotton is currently facing disruptions due to specific factors, resulting in increased costs and extended transit times.

China, for its part, has expanded its import quota. On March 16, an additional import quota of 300,000 tons of raw cotton was released in China—a figure exceeding the 2025 quota allocation by 100,000 tons.