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Cotton prices in India grew between 7 and 10 percent in January, compared with a month earlier, due to strong export demand for cotton yarn, according to India Rating and Research (Ind-Ra) data.
India’s cotton exports increased by 27.5 percent year-on-year during December 2020 and by 96 percent for the October-December quarter, compared with the same period a year earlier.
Domestic yarn production also increased in January, led by strong export and moderate domestic demand during December 2020. China’s demand for Indian yarn returned to pre-pandemic levels during the November-December period and in January, cotton yarn prices increased 30 per cent year-on-year.
This higher demand for Indian cotton yarn is attributed to global supply chain curbs on cotton sourced from the Xinjiang region, which is likely to continue benefitting Indian spinners.
