The cotton and yarn prices in India have fallen by 4% in the past 10 days due to market uncertainty after the outbreak of coronavirus in China. According to industry bodies and traders, the prices are expected to remain volatile in the short-term before a clear picture appears. As per industry estimates, India has 25% of its annual export of cotton and cotton yarn to China. The cotton yarn prices have fallen 3-4% to Rs 185-200 for export quality 30s carded yarn in the past 10 days, said exporters. Similarly, cotton prices have fallen 4% to Rs 39,500 per candy of 356 kg. India’s total cotton yarn exports to China are 1,100-1,200 million kg out of the total production of 4,100 million kg.
Sanjay Jain, MD, TT Limited said, “there has been a sentimental correction due the shutdown in China, we will get to know the real impact this week or by next week,” said Sanjay Jain, MD, TT Limited. He further added that everyone was holding purchases as buyers expect prices to fall. “With the halt in exports to China, we have not seen any increase in demand from Bangladesh and Vietnam. Everyone is waiting and watching the situation,” he said.
Mahesh Sharda, President of Indian Cotton Association, said the virus outbreak in China along with the Chinese New Year holidays has disturbed global markets for the next fortnight, and they expect clarity on export orders only by mid-February.