Gujarat Cotton Yarn Industry Bullish as Chinese Demand Surges Amid Synthetic Fiber Crisis
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Staff Reporter
Dubai,UAE
AHMEDABAD/RAJKOT. The cotton spinning sector in Gujarat is doing really well now. This is because Gujarats cotton spinning sector is getting a lot of export orders from China. The number of export orders for Gujarats cotton spinning sector is going up fast.
The main reason for this increase in export orders for Gujarats cotton spinning sector is that there are problems between countries in West Asia. These problems have stopped the flow of oil to places and the price of things made from oil like polyester has gone up a lot. The price of polyester is now at its point, in almost two years. Gujarats cotton spinning sector is benefiting from this situation.
As of April 27 2026 industry reports say Chinese textile makers are turning to cotton yarn. This is because they want to avoid prices of Purified Terephthalic Acid (PTA) and Monoethylene Glycol (MEG).Crude oil prices are around $100 per barrel.
This makes synthetic fibers expensive.Now Gujarats good quality cotton yarn is an option for them.It is more competitive and reliable.Chinese textile manufacturers are choosing cotton yarn.They are doing this because it is a choice.The price difference, between man-made and natural fibers is small now.So they prefer cotton yarn.
Strategic Drivers of the Surge
• Polyester Cost Pressure: Synthetic yarn producers in Asia are paying 30 percent more for their raw materials. This is because of supply chain problems in the Middle East. As a result garment makers in China are making more clothes using cotton and synthetic yarn together.
• China’s Domestic Supply Tightening: China has reduced the area where cotton is planted. This reduction in Xinjiang is expected to be between 3 to 5 percent this season. Because of this China is using up its stored cotton, which means they need to import cotton from India away.
• Logistical Edge: The ports in Mundra and Deendayal in Gujarat are working efficiently. This allows mills in Gujarat to deliver their products faster than competitors in Vietnam and Pakistan. These competitors are having problems, with logistics in their areas.
Operational Challenges Amid Growth
The Spinners’ Association of Gujarat has some worries. With many orders mills in Gujarat are facing problems. Sometimes they do not get renewable energy. During wind periods they get only 30% to 50% of the energy they need. As a result many mills have to use costly power from the grid.
This energy problem is slightly reducing the profits of mills. They are working at capacity to meet demand from China.
"A demand is there and our exports are doing well " said a representative from the Rajkot textile cluster. "The energy costs are high. The global shift to cotton because of the oil crisis helps Gujarats spinning industry. We are hopeful for the 2026-27 year."
Market experts think this positive feeling will continue in the quarter. This will happen if domestic cotton prices stay steady, at around Rs. 54,000 To Rs. 55,200 Per candy.