Export of Cotton Fabric From India Experiences Sharp Decline to $134M in November 2023

India Cotton Fabric Exports

In November 2023, approximately 63M square meters of woven fabrics of cotton were exported from India; surging by 4.3% on the month before. Over the period under review, exports, however, continue to indicate a mild decrease. The growth pace was the most rapid in December 2022 when exports increased by 12% m-o-m. Over the period under review, the exports hit record highs at 81M square meters in January 2023; however, from February 2023 to November 2023, the exports remained at a lower figure.

In value terms, cotton fabric exports declined markedly to $134M (IndexBox estimates) in November 2023. In general, exports, however, showed a relatively flat trend pattern. The growth pace was the most rapid in August 2023 with an increase of 13% against the previous month. Over the period under review, the exports hit record highs at 180M square meters in March 2023; however, from April 2023 to November 2023, the exports failed to regain momentum.

Exports by Country

Bangladesh (18M square meters) was the main destination for cotton fabric exports from India, accounting for a 28% share of total exports. Moreover, cotton fabric exports to Bangladesh exceeded the volume sent to the second major destination, Sri Lanka (5.7M square meters), threefold. The third position in this ranking was taken by South Korea (4M square meters), with a 6.4% share.

From November 2022 to November 2023, the average monthly rate of growth in terms of volume to Bangladesh totaled +1.0%. Exports to the other major destinations recorded the following average monthly rates of exports growth: Sri Lanka (-0.8% per month) and South Korea (+2.0% per month).

In value terms, Bangladesh ($36M) remains the key foreign market for cotton fabric exports from India, comprising 27% of total exports. The second position in the ranking was held by Sri Lanka ($12M), with a 9.2% share of total exports. It was followed by Nigeria, with a 6.5% share.

From November 2022 to November 2023, the average monthly growth rate of value to Bangladesh was relatively modest. Exports to the other major destinations recorded the following average monthly rates of exports growth: Sri Lanka (-0.9% per month) and Nigeria (+7.0% per month).

Exports by Type

Woven fabrics of cotton, containing 85% or more by weight of cotton, weighing not more than 200 g/m2 (42M square meters) was the largest type of cotton fabric exported from India, accounting for a 68% share of total exports. Moreover, woven fabrics of cotton, containing 85% or more by weight of cotton, weighing not more than 200 g/m2 exceeded the volume of the second product type, woven fabrics of cotton, containing 85% or more by weight of cotton, weighing more than 200g/m2 (13M square meters), threefold. Woven fabrics of cotton, containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibres, weighing more than 200g/m2 (3.8M square meters) ranked third in terms of total exports with a 6% share.

From November 2022 to November 2023, the average monthly rate of growth in terms of the volume of export of woven fabrics of cotton, containing 85% or more by weight of cotton, weighing not more than 200 g/m2 totaled -1.1%. With regard to the other exported products, the following average monthly rates of growth were recorded: woven fabrics of cotton, containing 85% or more by weight of cotton, weighing more than 200g/m2 (+0.5% per month) and woven fabrics of cotton, containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibres, weighing more than 200g/m2 (-1.3% per month).

In value terms, woven fabrics of cotton, containing 85% or more by weight of cotton, weighing not more than 200 g/m2 ($85M) remains the largest type of cotton fabric exported from India, comprising 63% of total exports. The second position in the ranking was taken by woven fabrics of cotton, containing 85% or more by weight of cotton, weighing more than 200g/m2 ($30M), with a 23% share of total exports. It was followed by woven fabrics of cotton, containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibres, weighing more than 200g/m2, with an 8.1% share.

From November 2022 to November 2023, the average monthly rate of growth in terms of the export volume of woven fabrics of cotton, containing 85% or more by weight of cotton, weighing not more than 200 g/m2 was relatively modest. With regard to the other exported products, the following average monthly rates of growth were recorded: woven fabrics of cotton, containing 85% or more by weight of cotton, weighing more than 200g/m2 (-0.3% per month) and woven fabrics of cotton, containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibres, weighing more than 200g/m2 (-2.4% per month).

Export Prices by Country

In November 2023, the cotton fabric price stood at $2.1 per square meter (FOB, India), which is down by -19.1% against the previous month. Over the period under review, the export price, however, continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in July 2023 an increase of 21% month-to-month. Over the period under review, the average export prices hit record highs at $2.7 per square meter in August 2023; however, from September 2023 to November 2023, the export prices remained at a lower figure.

Prices varied noticeably by the country of destination: the country with the highest price was the United Arab Emirates ($3.4 per square meter), while the average price for exports to South Korea ($1.1 per square meter) was amongst the lowest.

From November 2022 to November 2023, the most notable rate of growth in terms of prices was recorded for supplies to the United Arab Emirates (+4.0%), while the prices for the other major destinations experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform