The Chinese demand for Indian yarn has been mainly for the coarser yarn counts such as 16 and 21s, which are thick threads
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Indian cotton yarn has witnessed a robust demand from China with shipments registering a strong growth this year. The USDA in its latest update on world market and trade said India’s cotton consumption growth is fuelled by cotton yarn demand from China and cotton product demand from developed countries.“India’s cotton yarn exports to all markets rose 8 per cent so far this marketing year as a sharp rise in exports to China was partially offset by a reduction in exports to Bangladesh. India’s cotton yarn exports to China tripled in the first 10 months of the marketing year and market share rose from 7 to 21 per cent. China’s overall yarn imports increased over the same period, but India’s growth far exceeds that of other major suppliers as its exports benefited from a depreciating rupee and falling yarn prices,” the USDA said.Sharad Khemka, Managing Director of S.P.Yarns in Kolkata, a manufacturer and exporter of yarns, said the Chinese buying of Indian cotton yarn has been significant this year as their local prices are higher. Yarn production is not viable in China due to higher prices. Even now China is into buying Indian yarn, though the recent increase in cotton price here has posed a challenge, he added.Emerging major supplierThe Chinese demand for Indian yarn has been mainly for the coarser yarn counts such as 16 and 21s, which are thick threads. The coarse count yarns are used for heavy duty home textiles and knitted fabrics, Khemka said, adding that Vietnam has been a competitor for India in supplying for the Chinese market. Earlier, Pakistan used to supply, but now India has emerged as a major supplier in this category.Dhiraj Khetan of Sri Salasar Balaji Agrotech in Hyderabad, a spinner and exporter, said the cotton yarn exports have increased to countries such as China and Bangladesh this year. The Chinese are preferring to buy yarn when compared to raw cotton as the prices are cheaper here, he added.Meanwhile, cotton prices, which were on a uptrend in the past few days, eased Thursday around 2 per cent on the ICE market, influencing the domestic prices. “The market is easy as resellers and MNCs are active and have reduced the prices by around ₹500 per candy (356 kg). Going ahead the overall demand may ease amidst expectations of the new crop arrivals,” said Ramanuj Das Boob, a sourcing agent in Raichur.Further, the USDA said the India cotton imports are forecast at a record 4.8 million bales of 480 pounds each in 2025-26 (August 2025 – July 2026) and 3.0 million bales in 2026-27.Global output pegged higher“India’s government removed duties on all imported cotton for more than 6 months in 2025-26 and for the first 3 months of 2026-27 to support the domestic textile industry. As a result of this policy and other supportive measures, Indian cotton consumption is forecast at a record 26.5 million bales in 2026-27, up from 26.0 million bales in 2025-26. The previous record of 26 million bales was reached in 2020-21 in the rebound from Covid-19 closures in the previous marketing year,” the USDA said.Global production is forecast up nearly 400,000 bales to 117.6 million as larger crops in Brazil, Greece, and Türkiye more than offset a smaller crop in the U S. Global consumption is forecast to rise nearly 1.0 million bales to reach a 6-year high of 122.9 million as higher consumption in China, India, Indonesia, and Vietnam more than offsets lower consumption in Bangladesh and Egypt, the USDA said.Published on August 13, 2026
