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 Market report, India’s yarn export to Vietnam dropped to $6.485 mn in July 2022 from $18.084 mn in February this year. Monthly export was noted at $17.130 mn in March, $12.715 mn in April, $10.435 mn in May and $9.828 mn 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 mn from $131.540 mn in 2019. It further rose to $220.579 mn in 2021.
On the other hand, India’s import of yarn from Vietnam increased drastically to $24.875 mn in July from $4.521 mn in March 2022. India had imported yarn worth $6.612 mn in April, $7.733 mn in May and $7.714 mn in June 2022. Annually, the import recovered to $60.155 mn from $37.530 mn in 2020, which fell from $130.416 mn in 2019 due to COVID-19 disruption. India’s yarn import was valued at $61.270 mn 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 mn in 2017 and $129.885 mn in 2018 from Vietnam, as per market report.
