The scarcity of cotton along with a comparatively higher price in India has resulted in a shift in its trade dynamics with Vietnam. The far-eastern country, which was earlier one of the major markets for Indian cotton yarn, has now become a supplier to India. While India’s yarn exports show downward trend this year, its imports from Vietnam have jumped.
According to Fibre2Fashion’s market insight tool TexPro, India’s yarn export to Vietnam dropped to $6.485 million in July 2022 from $18.084 million in February this year. Monthly export was noted at $17.130 million in March, $12.715 million in April, $10.435 million in May and $9.828 million in June 2022. According to trade sources, the yarn export reduced from India due to price disparity. Cotton prices in India are still ruling higher than international market.
It is to be noted that India’s yarn exports to Vietnam had registered growth during preceding years. The export increased in 2020 to $169.087 million from $131.540 million in 2019. It further rose to $220.579 million in 2021.
On the other hand, India’s import of yarn from Vietnam increased drastically to $24.875 million in July from $4.521 million in March 2022. India had imported yarn worth $6.612 million in April, $7.733 million in May and $7.714 million in June 2022. Annually, the import recovered to $60.155 million from $37.530 million in 2020, which fell from $130.416 million in 2019 due to COVID-19 disruption. India’s yarn import was valued at $61.270 million in the first seven months of the current year, which is already more than the total inbound shipment of 2021.
India imported yarn worth $120.707 million in 2017 and $129.885 million in 2018 from Vietnam, as per TexPro.
Source: fibre2fashion