Registration for exports of cotton yarn has hit the highest in at least two years on burgeoning demand from India’s perennially importing countries i.e. Bangladesh and China.
Data compiled by the Directorate General of Foreign Trade (DGFT) showed that the exports registration authority has registered for over 100 million kgs of exports in November 2012. The quantity works out to 32% higher than the same in corresponding month last year and a marginal 5% increase from the previous month.
While the cotton yarn exports registration was recorded at 76.36 million kgs in November 2011, the same stood at 94.46 million kgs in the October 2012.
After a staggering growth in June and July 2012 with 82.42 million kgs and 94.51 million kgs respectively from the level of 62.81 million kgs in April, exports registration fell steadily by September to 64.27 million kgs. But, the hope of better growth in Chinese economy coupled with a recovery signal from the western economies, the demand of textile products is expected to rise going forward resulting into higher registration of cotton yarn exports, said an analyst.
The textile ministry forecast cotton yarn production to rise in 2012-13 financial year after a steep decline in 2011-12.
Cotton yarn production has varied from 3,079 million Kg in 2009-10 to 3,490 million Kg in 2010-11 and an estimated 3126 million kg in 2011-12. A decline was witnessed in cotton yarn production in 2011-12 due to stress levels of textiles industry. The trend has been reversed in 2012-13. The production of cotton yarn declined in 2011-12 due to sudden crash in prices of cotton/cotton yarn leaving industry with high cost inventories.
