With increased focus on sustainability trend, India’s raw cotton exports rise in FY21
27th July 2021, Mumbai:
Despite the pandemic, India maintains its position as the world’s largest cotton producer and second largest cotton exporter.
As per a Textile Value Chain report, after a decline in 2020, India’s exports of raw cotton again climbed up in FY 2021. However, exports of cotton yarns and fabrics dwindled from $9 billion in the FY 2019 to $7 billion.
Exports of wool, silk, and handloom textiles also dwindled in FY 2021 due to the pandemic as did the export of carpets and other textile materials. On the other hand, exports of manmade textiles increased by $8 billion
The Indian textile industry adds around 5 per cent to India’s GDP, 14 per cent to industrial production, and 11 per cent to total export profits, notes the Ministry of Industry and Commerce.
India exports around 74 per cent of the world’s cotton requirement. It also employs over 110 million people directly or indirectly in the sector.
The main cotton-producing states are: Gujarat, Maharashtra, Andhra Pradesh, Haryana, Punjab, Madhya Pradesh, Rajasthan, Karnataka, and TamilWith increased focus on sustainability trend Indias raw cotton exports rise Nadu.
Most of India’s cotton is exported to the US, Bangladesh, China, Vietnam, Pakistan, Indonesia, Taiwan, and Thailand.
Yarn and fabric exports drop after post-pandemic rise
Exports of cotton yarn, that had stabilized post pandemic, declined during the months of November 2020 and January 2021. From $3.8 billion in the FY 2019, they dropped to $2.7 billion in the FY 2021.
However, they were still $30 million higher than previous year’s exports. After a subsequent growth in the past three years, cotton fabric exports too dropped slightly in 2020 due to the pandemic.
From $110 million in March 2020, exports dropped down to $110 lakhs in April 2020.
Raw cotton exports reach second highest growth levels
Exports of raw cotton including waste hiked from $1billion in FY 2020 to $1.8 billion in the FY 2021, noting the second highest export since FY 2017. Exports rose from $12 lakh in April 2020 to $3 million in March 2021.
The pandemic has adversely affected the Indian textile industry, which is the second largest industry after agriculture in India.
Yet, future outlook for the cotton sector appears bright as the industry increasingly adapts itself to the growing sustainability trend.
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