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G. Gurumurthy

China is reported to have booked import of some one lakh bales of raw cotton from India this year so far and these cotton largely comprises the Punjab (J-34) and Gujarat (Sankar-6/4) varieties.

Coimbatore , Nov. 10

IN the face of sustained import indenting of Indian yarns by Korea and Hong Kong, the export boom for India's cotton yarn currently being witnessed may last at least up to January 2004, informed cotton/cotton yarn trade sources say.

The Korean and Hong Kong based cotton trade which source Indian yarn supplies on behalf of the Chinese textile manufacturers may slowdown their imports beyond January next by which time, China is expected to stop import-procuring of both raw cotton and cotton yarn in view of the latter's lunar festival falling in February next when most business activities there would come to halt for some time.

Right now, China is the active buyer of both cotton and cotton yarn in international market to meet its internal requirements. It is said that Chinese textile industries keen to tap the full potential of the global apparel exports to push their country's share in exports during 2004, the last year for the quota-based textiles and clothing trade, may require1.4 million tonnes of raw cotton which it is currently sourcing from the international markets including imports from India. China is reported to have booked import of some one lakh bales of raw cotton from India this year so far and these cotton largely comprises the Punjab (J-34) and Gujarat (Sankar-6/4) varieties.

Similarly, the market estimates that China would require substantial quantities of cotton yarns, which would be covered from global market over the next six months or beyond.

According to yarn market sources, China may end up importing anywhere between 52,000 tonnes and 75,000 tonnes of cotton yarn from India from now until September/October 2004, yarn trade sources told `Business Line'.

Looking from this background, the trade sources say, that the raw cotton and yarn market may loose some steam only towards next January-end when the prices of these commodities may come down in the absence of Chinese' buying spree.

The booming yarn exports have almost pushed up the price of cotton yarn by 75 cents to one dollar in the much sought after `demand' counts such as 20s, 24s, 30s and 40s. In the case of 40s count yarn, for example, the export price in a matter of one month has surged by a dollar to $3.30/3.40 per kg. The 30s count Indian yarn is currently being quoted anywhere between $3.05/3.15 a kg, up by 75 cents from July/Aug 2003 rate quote.

The booming export market has cast its spell on the domestic yarn market as well with almost all major yarn producers have jacked up the prices for the current month sale/deliveries in the local yarn market. This has led to an uproar among the domestic textile producers involved in weaving/garmenting who complain of sharp increase in their raw material price.

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