Home News US ban on Xinjiang cotton opens up opportunity for Indian home textiles

US ban on Xinjiang cotton opens up opportunity for Indian home textiles

Recent US ban on China’s  Xinjiang cotton imports presents another opportunity for the Indian home textile exporters to increase their market share in USA. Indian home textiles exports has recovered from lockdown much faster than expected due to extended stay-at-home period and sharper focus on health and hygiene and the ban on China’s cotton will further help the industry to consolidate position in world’s biggest market. It may be recalled here that the Trump administration had announced an import ban in January on all cotton and tomato products from western China’s Xinjiang region over allegations that they are made with forced labour from detained Uighur Muslims.

“As we all know that US has banned Chinese cotton from the Xinjiang region and this is a big blow to them because 87% of their cotton comes from this region. As we are coming to know about the finer details and due to this big blow to the Chinese exports, it is a big opportunity for India to grow in these segments, which we have been forecasting time and again, the fashion bedding, utility and institutional business,” said K.R. Lalpuria, Executive Director and CEO of Indo Count Industries Limited

Commenting on the recent trend, Dipali Goenka, CEO & Joint MD, Welspun India says “Recent trend shows that China’s share in the US market continues to be under pressure and this is more evident especially in the rugs and flooring products. We are seeing shift from China to India already happening over the last few months. Walmart has recently announced that it will triple its sourcing of goods from India to $10 bn each year by 2027. Walmart’s new import commitment is expected to provide a significant boost to companies like Welspun. Welspun and Walmart go back over two decades and have been sharing a relationship built on mutual respect and trust.”

Thus, after prolonged lull, Indian home textile exporters are seeing rebound in demand. However, if the ban on Chinese cotton continues for long, it may have inflationary effect on cotton yarn thus affecting the margins of home textile exporters. Crisil has already predicted significant growth in the revenues of yarn exporters in the next financial year which also means home textile makers should brace for higher yarn price in the coming days.

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