Ahmedabad: Gujarat’s cotton yarn industry is witnessing a sharp surge in demand from China amid disruptions caused by the ongoing conflict involving Iran, the United States, and Israel, even as several other sectors struggle with rising input costs.

Many industries are currently facing pressure due to escalating raw material prices linked to the conflict. However, cotton yarn manufacturers have emerged as a notable exception, benefiting from shifting global supply chains.

According to industry reports, Chinese demand for Indian cotton yarn has risen significantly after disruptions in traditional supply routes. China, which typically imports cotton yarn from the United States and Brazil, is experiencing delays due to longer transportation times from these regions amid instability in West Asia. This has prompted Chinese buyers to increasingly source yarn from India.

As a result, cotton yarn mills in Gujarat, one of India’s key manufacturing hubs, have seen their order books grow by nearly 40% over the past two months. Units that were previously operating at around 80% capacity are now running at full capacity, with production orders already secured through June.

Currency movement has further strengthened India’s export competitiveness. The Indian rupee has depreciated by around 7% against the Chinese yuan, making Indian cotton yarn more affordable for Chinese importers.

Despite the broader industrial impact of an ongoing gas supply crunch linked to the conflict, most cotton yarn units have remained largely unaffected. This is primarily because they depend on grid electricity or solar power rather than gas-based energy.

Exports Rise Five-Fold

Exports of cotton yarn to China have recorded a substantial increase. Monthly shipments have jumped from around 300 containers to nearly 1,500 containers, translating to approximately 30,000 tonnes per month, a five-fold rise. DeshGujarat