The lower production of crops in the Xinjiang province of China this year has resulted in the country ordering around 5,000 tonnes of cotton yarn from India in the last fortnight. The province produces more than 70% of Chinas total cotton production.
The latest orders are going to help the Gujarat-based spinning mills, which have been facing a dull phase, in a big way as the majority of the orders will be fulfilled by the states spinning mills in the next two months.
Indian cotton prices have remained higher than international prices for around a year, and therefore, cotton yarn export has slipped. Chinas Xinjiang state has estimated around 10-15% less production at 27.5 million bales this year.