India’s yarn imports from China are increasing due to rising raw material costs

Between January and April 2023, India imported 251.533 million kg of yarn from China, accounting for 68.86 percent of the country’s total yarn imports. The value of these imports was US$448.634 million, an increase of 17.43 percent compared to the same period last year. The significant share of yarn imports is due to higher commodity prices in India making imported yarn cheaper.

India’s yarn imports from China were worth US$384.003 million in January-April 2022. However, in terms of value, these imports were 11.17 percent lower than in the January-April 2021 period, when imports were worth $432.306 million. In the same period in 2020 and 2019, according to the provided data, the value of yarn imports of India was US$150.655 million and US$162.227 million, respectively.

In 2022, India’s yarn imports were 503.122 million kg with a total value of US$1,359.584 million. This was an increase from 487.956 million kg (US$1,094.979 million) in 2021, 246.586 million kg (US$513.958 million) in 2020 and 178.995 million kg (US$524.742 million) in 2019.

While increased imports posed challenges to India’s domestic spinning industry due to lower demand, the weaving industry benefited from the availability of cheaper imported yarns. In addition, a slowdown in apparel demand in both global and domestic markets is affecting the industry.

According to the available data, the total yarn imports of India amounted to US$654.816 million in the first four months of 2023. Among India’s top five yarn suppliers, China was the leading supplier, accounting for 68.86 percent of total imports. Other important suppliers were Indonesia (5.11 percent), Nepal (4.1 percent), Vietnam (4 percent) and Bangladesh (3.60 percent) for the period January to April 2023.

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