INDIA: Spun yarn exports in June 2010

In June 2010, exports of spun yarn volume picked up dramatically despite the markets moving into the lean season period. Supported by good pricing, value earning jumped significantly during the month. The average unit price realization touched a fresh peak, pushed by rising in input costs and improved demand.

During the month, exports totaled Rs.934 crore, up 59% from last year and inching above the previous high of March 2010. With INR appreciating just 1% during the same period the value in terms of US$ increased 60% and volumes were up 15%. About 53 million kgs of spun yarn was exported valued at US$201 million in June 2010 as against 46 million kgs and US$125 million last year. The overall unit price realization averaged US$3.79/kg, as against US$2.71/kg last year, implying an increase of 40%. It was also a hefty US cents 31 higher than the previous month. Thus, exports during the first three months of 2010-11, aggregated 145 million kgs valued at US$520 million or Rs.1,764 crore.

In June 2010, spun yarn was exported to 84 countries. Of these, Asian destinations accounted for 46% of export value, while West Europe accounted for another 16%. South America followed closely with a share of little over 15%. Middle East was in the fourth place with a share of 14%.

Compared with the same month last year, export to Asian countries was up 68% this June while that to West Europe more than doubled. To Middle East and South America, the increases were 72% and 63% respectively. This month exports to North America, Africa and Oceania countries decline substantially both in terms of volume and values. Exports to CIS increased 12% to US$3.14 million and that to East Europe by 43% to almost US$4 million.