A lot of speculations are floating in the Indian yarn market regarding the steep rise in imports of cotton garments from China which is seen as the main cause for low demand in the entire textile value chain in the country. “All the items in the garment category are being imported as they are cheaper than the garments made in India. If garments are imported from China, nobody will buy yarn or fabrics. Therefore, demand is not improving even during the festival season,” a trader from Ludhiana told Fibre2Fashion.
Monthly garment exports from China increased consistently during the last six months. The exports grew to $77.066 million in April, $87.901 million in May, $109.995 million in June, $129.678 million in July and $131.555 million in August 2022, according to Fibre2Fashion’s market insight tool TexPro. The data shows that garment exports grew in July 2022 over June 2022 when the US banned cotton and cotton products originating from the Xinjiang region of China. Cotton and yarn prices declined in the Chinese market after the ban.
China’s apparel exports to India increased by two and a half folds in August compared to March 2022. Monthly exports rose to $131.555 million in August from $53.275 million in March 2022. Although, the trade value is insignificant for both nations, the trend is important as it indicates that more and more Indian buyers are importing cheaper Chinese garments.
Chinese exports to India increased to $274.963 million in the second quarter from $184.135 million in the first quarter of this year. Annually, the exports rose to $1,145.475 million in 2021 from $838.195 million in 2020. The exports were at $720.332 million in the first eight months of the current year.
Chinese apparel exports were at $448.821 million in the first half of this year. Trousers and shorts contributed 22.61 per cent ($101.491 million) in the total supply. Jackets and blazers (18.17 per cent), accessories (15.27 per cent), socks (7.06 per cent) and dresses (5.78 per cent) were the other top products exported to India, as per TexPro.
Fibre2Fashion News Desk (KUL)
