Iran War Disrupts Trade; Indian Cotton Yarn Hub Sees Surging Exports to China Against the Trend
Middle East conflicts have disrupted supply chains, hurting many Indian factories, but cotton yarn producers are boosting output due to unprecedented demand from China. Exports from Gujarat to China have quadrupled.
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- 📰 Published: April 23, 2026 at 18:05
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(Central News Agency, Ahmedabad, 23rd) Supply chain and fuel disruptions caused by the Middle East war have hit many factories in India hard, but cotton yarn producers like Fiotex Cotspin are increasing production due to unprecedented demand from Chinese customers. Cotton yarn shipments from the western Indian state of Gujarat to China have increased fourfold.
Reuters reports that India is the world's second-largest cotton producer after China, but China needs to import about 15% of its raw cotton and 20% of its cotton yarn to meet its demands.
Indian traders state that the Middle East war has disrupted trade routes, reducing cotton supplies to China from other countries, making India a favored and nearby sourcing location.
Tight domestic cotton supply coupled with freight delays from the US and Brazil has caused China's demand for imported cotton yarn to rise sharply.
At the same time, the Indian Rupee has depreciated by about 7% against the Chinese Yuan this year, making it cheaper for Chinese buyers to import Indian cotton yarn.
Ripple Patel, Managing Director of Fiotex spinning mill in Gujarat, said his export order volume has grown by 40% in recent months, and the factory's capacity utilization rate has increased from 90% to 100%.
Patel told Reuters: "In terms of profitability, exporting is more advantageous, so we have increased our export ratio... we are currently booked with orders until June."
The China National Textile and Apparel Council declined to comment on the increase in imports from India.
Many manufacturing hubs in India have been hit by commercial gas shortages and rising input costs for plastics and industrial components. However, industry executives point out that spinning mills mostly rely on the power grid or solar power, and thus have not been affected by fuel disruptions.
Rahul Shah, Co-chairman of the Textile Committee of the Gujarat Chamber of Commerce and Industry, noted that since November last year, about 1,500 containers carrying 30,000 metric tons of cotton yarn have been shipped from India to China each month, far higher than the previous average of about 300 containers per month.
The war's impact on polyester supplies has boosted the appeal of cotton, and the depreciating Rupee has further driven up shipments. Shah pointed out that a large number of spinning mills in Gujarat will continue to maintain a similar export scale in April and May to capitalize on the surge in Chinese demand. (Translator: Ho Hung-ju) 1150423
Reuters reports that India is the world's second-largest cotton producer after China, but China needs to import about 15% of its raw cotton and 20% of its cotton yarn to meet its demands.
Indian traders state that the Middle East war has disrupted trade routes, reducing cotton supplies to China from other countries, making India a favored and nearby sourcing location.
Tight domestic cotton supply coupled with freight delays from the US and Brazil has caused China's demand for imported cotton yarn to rise sharply.
At the same time, the Indian Rupee has depreciated by about 7% against the Chinese Yuan this year, making it cheaper for Chinese buyers to import Indian cotton yarn.
Ripple Patel, Managing Director of Fiotex spinning mill in Gujarat, said his export order volume has grown by 40% in recent months, and the factory's capacity utilization rate has increased from 90% to 100%.
Patel told Reuters: "In terms of profitability, exporting is more advantageous, so we have increased our export ratio... we are currently booked with orders until June."
The China National Textile and Apparel Council declined to comment on the increase in imports from India.
Many manufacturing hubs in India have been hit by commercial gas shortages and rising input costs for plastics and industrial components. However, industry executives point out that spinning mills mostly rely on the power grid or solar power, and thus have not been affected by fuel disruptions.
Rahul Shah, Co-chairman of the Textile Committee of the Gujarat Chamber of Commerce and Industry, noted that since November last year, about 1,500 containers carrying 30,000 metric tons of cotton yarn have been shipped from India to China each month, far higher than the previous average of about 300 containers per month.
The war's impact on polyester supplies has boosted the appeal of cotton, and the depreciating Rupee has further driven up shipments. Shah pointed out that a large number of spinning mills in Gujarat will continue to maintain a similar export scale in April and May to capitalize on the surge in Chinese demand. (Translator: Ho Hung-ju) 1150423