Cotton textile industry fortunes plummet

Cotton and yarn prices are falling due to low demand.

Cotton textile exports fell 27 per cent year on year between April and December. Falling demand in the United States and Europe is a major reason why China’s lockdown has caused cotton and yarn prices to fall. In the United States, rising cotton prices have exacerbated the situation. Mills are dealing with the problems of high-cost inventory and low capacity utilisation. There is some hope that China’s reopening will alleviate these problems. The increase in textile exports from India seen at the start of 2022 did not last until the end of the year.

Exports of cotton yarn, textiles, ready-mades, and handlooms fell by 27% year on year between April and December 2022, according to industry data.