Textile Market Forecast for exports to Bangladesh

Being one of India’s prominent Cotton Yarn Suppliers, we have observed, in the last few months, that the export orders of the cotton yarns from India reducing substantially. During the recent times, even the local demand took a major hit with quite a few yarn spinners as well as fabric producers working at less than 50% capacity.

A lot of factors have played around, including the global economic slowdown and the prices of the raw cotton fibre going up.

During the recent textile exhibition (Intex2022) in Bangladesh which happened during mid of June 2022, our team met a few customers to get their thoughts towards the possible further scenario of the demand and the prices.

As per our understanding, the prices of Indian Cotton yarn weren’t at par with the local prices. This in turn caused the demand from India to reduce and shift to Vietnam and local Bangladeshi cotton yarn spinners to whatever they are buying with the overall reduced volumes.

Most of the Indian Cotton yarn spinners who had exhibited at the Intex2022 have been doing business in Bangladesh since many years and had the opinion that the demand is expected to get better by the end of July 2022, and if the yarn price support comes in with the reduced prices of cotton in India, then we would have some orders getting confirmed.

Bangladesh is an important yarn buying partner for India with almost 50% share of the export of cotton yarn from India. With the industry expecting the markets to revive fully by Oct 2022, we expect that within July/Aug there would be some movements. As per the information we have, some fabrics exports have already started to Bangladesh with volumes much bigger than last months. This gives some hope that yarn would follow.