COIMBATORE Threading its way up, cotton yarn exports are slowly on their path to regain lost glory. While the export turnover is still almost 20% lower to what it was two years ago, the demand is slowly picking up and the textile mills in the country are looking forward to a further recovery in European textile industry.
In 2009, October witnessed the most emphatic rise in yarn exports ever since the global crisis set in 2008. Data available with Yarns and Fibres Exchange showed during the month, exports increased to Rs 661 crore , up by 12% over the previous year. The statistics with Southern India Mills Association (Sima) also showed that US $1243 million worth cotton and blended yarns was exported during April to December 2009.
"Though we haven’t yet reached the previous high, the demand for yarn is improving globally and we see a good revival," said Confederation of Indian Textiles Industry (Citi) & Textile Export Promotion Council (Texprocil) ex-chairman & GTN Textiles MD B K Patodia.
He said, as Japan and highly developed countries in Europe have stopped manufacturing primary textile products and began to concentrate on niche products, their requirement of yarn has grossly come down . But, the demand for Indian yarn is growing in traditional markets like Bangladesh and Korea.
Even in China, the requirement is increasing and experts believe the dragon country will soon increase its quantity of yarn import from India. According to Yarns and Fibres Exchange research, Bangladesh, South Korea, Brazil, China, Turkey, Italy and Peru accounted for half of yarn exports from India in October 2009, which was worth US $ 56 million.
Sima secretary general K Selvaraju told ET that there is also a paradigm shift in product type. "Since, the mills are concentrating on Asian markets and Far East countries, they have started producing more of fine medium counts and medium coarser counts rather than super fine counts," he said, adding, currently the export demand is mainly for such quality yarns.
Mr Patodia added, since domestic market is looking more lucrative now, the mills have increasingly started supplying to institutional buyers rather than concentrating on exports. "But after a dull 2009, the outlook for yarn exports is looking bright this year," he said.
Citi secretary general D K Nair too felt, the surging demand from garments industry in India has created a huge market for quality yarns. However, he said, the export market is also looking good and asthe cotton prices have stabilised in the last one week, the industry is looking forward to better days.
Loyal Textiles CMD Manickam Ramaswamy said the rupee appreciation is slightly affecting the yarn exports. "Since exchange fluctuation is passed on to the customers and today, there is appreciation in rupee, overseas customers are not accepting our prices. But, they will surely come back to us, when their requirements are not met else where," he added.
Source : The Economic Times