Surge in Indian Cotton Yarn Exports to China

18-Aug-2026 05:10 PM

Mumbai: Exports of cotton yarn from India to China have nearly tripled, leading to a significant rise in the Indian product's market share in China and providing a major boost to Indian cotton spinners. However, Chinese mills currently hold substantial stocks of cotton yarn, which could lead to some softening in demand going forward.

India's share of the Chinese cotton yarn market has surged from 7 percent to 21 percent. Indian cotton yarn remains competitively priced, aided by the rupee's significant depreciation against the dollar. Meanwhile, China has made a strategic decision to reduce import duties on raw materials for the textile industry—a move expected to remain in effect throughout the year—thereby facilitating yarn imports for textile mills.

High domestic cotton yarn prices in China are driving increased interest among millers in importing cheaper Indian products. Domestically, the area sown with cotton during the current Kharif season has reached 107.33 lakh hectares, which is 94,000 hectares less than the 108.27 lakh hectares recorded during the same period last year. Sowing has now reached its final stage. Arrivals of the new cotton crop are set to begin in September in the northern region's markets and in October in other parts of the country.