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New Delhi: While the global economy and supply chains have been battered due to ongoing conflict in West Asia as the war between Iran and the US-Israel alliance continues to aggravate, some sectors have benefited from the unrest as well. One among them is India’s cotton industry.

How is cotton industry benefiting?

While supply chain ⁠and ⁠fuel disruptions triggered by the war in ⁠the Middle East have been disastrous for many Indian factories, several cotton ​yarn makers in the country are increasing production as demand from China are exponentially growing.

India is the world’s second-largest cotton producer after China, but the latter relies on imports for roughly ‌15 per cent of its raw cotton and about 20 per cent of its yarn to meet demand. With the US-Iran war disrupting global ⁠trade routes, cotton ⁠supplies to China from other countries declined. This has led to India coming out as a preferred and nearby sourcing ​point to fulfill Chinese demands.

India benefits 

Another added benefit to India is that with the rupee weakening about 7 per cent against the yuan this year, Indian cotton yarn imports have become cheaper ​for Chinese buyers. Ripple Patel, managing director of spinning mill Fiotex in the western Indian state of Gujarat told Reuters, that his ⁠export ⁠order book has grown by ⁠40 per cent in recent months, ​and his factory is at 100 per cent capacity utilisation, compared to 90 per cent earlier. “As exports are more viable in profit realisation, ​we have increased its share … Orders ⁠have already been booked until June,” he said.

Around 1,500 containers, carrying 30,000 tonnes of cotton yarn, are sailing from India ⁠to China each month since November, compared to an average 300 containers earlier, Rahul Shah, co-chair of Textiles Committee in Gujarat Chamber of Commerce and Industry further commented in the same Reuters report. The war’s impact on polyester supplies have also made cotton more attractive.