Vietnam becomes the main yarn supplier to India

The scarcity of cotton along with comparatively higher prices in India has led to a change in the country’s trade dynamics towards Vietnam. From a country that is one of the main markets for Indian cotton yarn, Vietnam has now become the main source of yarn to this country. Meanwhile India’s yarn exports show a downward trend this year, its imports from Vietnam have a significant jump.

According to data from Fiber2Fashion’s market research tool TexPro, India’s yarn exports to Vietnam fell to $6,485 million in July 2022. Monthly exports reached $17.130 million in March, 12,715 million USD in April, 10,435 million USD in May and 9,828 million USD in June, 2022. According to trade sources, yarn exports from India decreased due to price disparity. Cotton prices in India are still higher than in the international market.

On the other hand, India’s yarn imports from Vietnam increased sharply from US$4,521 million in March to US$24,875 million in July 2022. India’s yarn imports by month alone were $6,612 million in April, $7,733 million in May and $7,714 million in June 2022. Annually, imports increase to $60,155 million in 2020, which decreased from 2019 due to the COVID-19 pandemic. India’s total yarn imports valued $61,270 million in the first seven months of this year, significantly more than the total imports of 2021.