US ban on China cotton hurting India's yarn spinning industry

Indian yarn exported to China and Bangladesh gets converted into fabric and garments and then gets exported to Europe and the US.

post by Priya | 5:32am on 23rd Sep 2022 Friday
#Cotton

The US ban on textiles originating from the Xinjiang province of China has compounded the problems for India's cotton yarn spinning industry, with half of the mills becoming idle in the past four to five months. The Chinese yarn that can't go to the US is now finding its way into the Indian market at cheaper rates, further reducing demand for expensive domestic Indian cotton yarn that has already been down. Indian cotton has been one of the cheapest in the world till September 2021, when Indian as well as global cotton prices started rising.