Indian yarn exports to China have surged, doubling from 10% in the 2023 fiscal year to 21% in 2024. This increase is driven by India’s affordable yarn prices and forced labor allegations in China’s Xinjiang province. India’s total cotton yarn exports rose by 83%, with 32% of production exported in 2024, primarily to China.
Xinjiang’s human rights issues have led China to boost yarn imports from India. Additionally, India exports 60% of its cotton yarn to Bangladesh and Vietnam. Despite a drop in domestic cotton prices due to reduced demand, India’s ending stock from last year will stabilize the market this year. Last fiscal year saw a 9% increase in cotton yarn production, but only 70% was used, contributing to increased ending stock.
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