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Textiles & apparel

Export cotton yarn

Bulk cotton yarn sold to weaving and knitting mills abroad; Bangladesh is by far the largest buyer.

Free to exportHS 5205
HS code
5205
Cotton yarn with 85% or more cotton by weight, not put up for retail sale (spun yarn in cones for weaving and knitting mills).
Export policy
Free to export
Free to export under ITC(HS) Schedule 2. Confirm the exact 8-digit line on the DGFT ITC(HS) search before shipping.
Registrations
3
IEC, GST and those below
India’s exports, 2025-26
US$ 3.22 bn
to 97 countries

What is exported

India exports combed and carded cotton yarn, mostly in counts used by garment and fabric mills. It is a mill-to-mill trade: buyers order by count, twist and quality parameters, often container by container. In 2025-26 India exported about US$ 3.2 billion of HS 5205 yarn; Bangladesh took the largest share, followed by China, Egypt, Peru and Vietnam (Commerce Department data).

Varieties, grades and forms

  • Carded yarn, coarse and medium counts (Ne 10s–30s)The bulk of the trade; used for denim, towels and basic knits. Bangladesh and China buy it by the container.
  • Combed yarn (Ne 30s–60s)Smoother and stronger; used for knitted T-shirts and shirting. Fetches a higher price per kg.
  • Compact and fine counts (Ne 60s and above)Made on compact spinning for premium shirting and fine fabrics; fewer mills, tighter quality checks.
  • Open-end (rotor) yarnLow counts spun from comber noil and waste; used for denim, towels and industrial fabrics.
  • Grey, dyed and core-spun (with elastane) yarnMost exports are grey (undyed). Dyed and core-spun stretch yarn are smaller niches with their own drawback lines.

Where it is grown or made

  • Tamil NaduCoimbatore, Tiruppur, Dindigul, Virudhunagar (Rajapalayam) — the largest spinning belt
  • GujaratAhmedabad and the Saurashtra spinning mills near the cotton fields
  • PunjabLudhiana and Bathinda
  • Andhra Pradesh and TelanganaGuntur and the mills around Hyderabad
  • Maharashtra and Madhya PradeshMills in the Vidarbha and Malwa cotton belts

Export packing

  • Yarn is wound on paper cones, the cones are packed in polybags and then in cartons or HDPE woven bags, usually 45–60 kg per pack.
  • Each carton shows count, lot number, net and gross weight and mill name; buyers reject mixed lots.
  • Pallets, if used, must be ISPM-15 treated and stamped. Keep moisture regain within the contract limit to avoid weight claims.

Who buys abroad

  • Weaving and knitting mills (Bangladesh, Vietnam, Sri Lanka)
  • Yarn importers and traders in China and Egypt
  • Denim and home-textile manufacturers
  • Sourcing agents of garment brands who nominate yarn suppliers

The quality buyers ask for

Count
English count (Ne) with a tolerance agreed in the contract; tested by the skein method (ASTM D1907 or ISO 7211-5)
Strength
CSP (count-strength product, skein test ASTM D1578) or single-yarn tenacity in RKM / cN per tex (ISO 2062)
Evenness and imperfections
U% or CV% with thin places, thick places and neps per kilometre, usually benchmarked against Uster Statistics levels the buyer names
Twist and hairiness
Twists per inch (TPI) for weaving or knitting use; hairiness index
Type and process
Carded, combed, compact or open-end; ring-spun or rotor; grey, dyed or core-spun
Contamination
Limit on foreign fibres and polypropylene contamination, as written in the buyer's specification
Package
Cone weight and winding (paper cones, splice-free or with air splices)

Certificates

  • Mill test reportRequiredLab report for each lot showing count, CSP/RKM and evenness. Every buyer asks for it.
  • OEKO-TEX STANDARD 100Often askedIndependent test that the yarn is free of listed harmful substances. Asked for by brands' supply chains.
  • GOTS / OCS (organic)Often askedFor organic cotton yarn: Global Organic Textile Standard or the Organic Content Standard, with transaction certificates per shipment.
  • Better Cotton / Kasturi Cotton BharatOften askedProgrammes that trace cotton from farm to yarn; Kasturi Cotton Bharat is the Indian brand promoted by the Ministry of Textiles and TEXPROCIL.
  • ISO 9001Often askedQuality management system for the mill. Large buyers prefer certified mills.
  • Cotton origin proof (for US-bound goods)Often askedDocuments tracing the cotton to its farm or ginning region, so the buyer's garments are not held under the US Uyghur Forced Labor Prevention Act.

Shipping, storage and shelf life

Container load

Sea freight in full containers. A 20-ft container has about 33 cubic metres of space and a 40-ft about 67; yarn fills the space before it reaches the weight limit, so many shippers use 40-ft or 40-ft high-cube boxes for long routes. Ask the line for its payload limit.

How it travels

Sea for overseas buyers; road through land ports for Bangladesh and Nepal where allowed.

Storage

Keep cartons dry and off the floor. Cotton absorbs moisture; too much raises weight claims and mildew, too little makes yarn brittle.

What goes on the pack and carton

  • Each carton or bag: count, type (carded/combed), lot number, net and gross weight, number of cones, mill name and 'Made in India'.
  • Shipping marks matching the invoice and packing list (buyer name, port, carton number).
  • Organic or certified yarn: the certification scope number and label as the standard requires.
Where to get it tested

Test yarn at textile research associations that work with mills: SITRA (Coimbatore), NITRA (Ghaziabad), BTRA (Mumbai) and ATIRA (Ahmedabad), or at any NABL-accredited textile lab (search the NABL directory by 'textiles' and your city). The Textiles Committee of the Ministry of Textiles also runs testing labs. Use the same lab for every lot so results stay comparable.

Benefits of exporting this product

Where to register

  • TEXPROCIL (Cotton Textiles Export Promotion Council)RCMC for cotton yarn, fabrics and cotton made-ups. Needed to claim export benefits and to join council trade fairs.texprocil.org ↗

Quality and checks

  • A mill test report for each lot: count, count variation (CV%), strength (CSP or RKM), unevenness and hairiness. Buyers compare it with their own lab tests.
  • Pre-shipment inspection by an agency the buyer names, if the contract asks for it.
  • Cotton origin proof for buyers who sell into the USA: US Customs can hold goods suspected of containing cotton from Xinjiang under the Uyghur Forced Labor Prevention Act.
How to start small

A trader without a mill can start as a merchant exporter: tie up with one spinning mill, take its test reports, and offer one or two counts to a buyer in Bangladesh or Sri Lanka, where a sight letter of credit is common. Get a TEXPROCIL RCMC, ship one container against an LC, and repeat with the same buyer before adding counts.

Where new exporters go wrong

  • Quality claims after arrival: the buyer's test shows a weaker count or higher CV% than your report. Keep retained samples of every lot and agree in the contract which lab decides a dispute.
  • Raw cotton prices move fast. Quoting a fixed price for months ahead without a price clause can wipe out the margin.
  • Neighbouring-country import rules (land ports, documents) change at short notice. Check TEXPROCIL circulars before you book a truck or container to Bangladesh.

Documents this product needs

Schemes that apply

Sources (6)
  1. Department of Commerce, Export Import Data Bank — India's exports of HS 5205 by country, 2025-26
  2. DGFT — Appendix 2T: Export Promotion Councils and the products under each
  3. DGFT — ITC(HS) export policy search (Schedule 2)
  4. DGFT — RoDTEP scheme page and Appendix 4R rates
  5. US Customs and Border Protection — Uyghur Forced Labor Prevention Act
  6. TEXPROCIL — official site

Trade data

Indian cotton yarn exports in numbers

From the Department of Commerce’s TradeStat, country by country. US$, Indian financial years (April–March).

Exports in 2025-26
US$ 3.22 bn
+3.5% a year on average, 2020-21 to 2025-26
Change from 2024-25
↓ -4.1%
US$ 3.35 bn → US$ 3.22 bn
Buyer countries
97
Average export price
US$ 2.88
per kg · 1.12 mn tonnes shipped · US$ 3.11 the year before
Bangladesh: US$ 1.39 bnChina: US$ 457 mnEgypt: US$ 236 mnVietnam: US$ 123 mnSouth Korea: US$ 76.1 mnSri Lanka: US$ 63.3 mnItaly: US$ 47.9 mnGermany: US$ 32.2 mnJapan: US$ 31.3 mnMauritius: US$ 20.8 mnIndonesia: US$ 20.4 mnNepal: US$ 14.6 mnBangladesh: US$ 1.39 bnBangladeshChina: US$ 457 mnChinaEgypt: US$ 236 mnEgyptVietnam: US$ 123 mnVietnamSouth Korea: US$ 76.1 mnSri Lanka: US$ 63.3 mnSri LankaItaly: US$ 47.9 mnItalyGermany: US$ 32.2 mnJapan: US$ 31.3 mnMauritius: US$ 20.8 mnIndonesia: US$ 20.4 mnNepal: US$ 14.6 mnIndia
Where Indian cotton yarn goes — among our 30 countries, 2025-26
2020-21: US$ 2.71 bn2.7k2020-212021-22: US$ 5.21 bn5.2k2021-222022-23: US$ 2.56 bn2.6k2022-232023-24: US$ 3.58 bn3.6k2023-242024-25: US$ 3.35 bn3.4k2024-252025-26: US$ 3.22 bn3.2k2025-26
India’s cotton yarn exports, year by year · US$ million

The price cycle

India’s average export price per kg each year (total value ÷ total quantity). Highest in 2022-23, lowest in 2020-21 — a 53% swing between them. Keep this swing in mind when you quote.

2020-21: US$ 2.76 per kg2.762021-22: US$ 3.99 per kg2022-23: US$ 4.22 per kg4.222024-25: US$ 3.11 per kg2025-26: US$ 2.88 per kg2.882020-212021-222022-232023-242024-252025-26
Average export price of Indian cotton yarn · US$ per kg · dotted = year in between not available

What next: a projection from the trend

The past trend carried forward — not a forecast by any authority. Sudden changes in policy, prices or demand are not in it.

2020-21: US$ 2.71 bn2020-212021-22: US$ 5.21 bn2021-222022-23: US$ 2.56 bn2022-232023-24: US$ 3.58 bn2023-242024-25: US$ 3.35 bn2024-252025-26: US$ 3.22 bn2025-262026-27: US$ 3.3 bn (US$ 2.25 bn – US$ 4.85 bn)3.3k2026-272027-28: US$ 3.29 bn (US$ 2.14 bn – US$ 5.06 bn)3.3k2027-28
India’s cotton yarn exports and projection · hollow bars = projection, line = likely range
By 2027-28: US$ 3.29 bn

Likely range US$ 2.14 bn to US$ 5.06 bn.

Trend
-0.4% a year
Fit (R²)
0 — weak, read with care
Based on
6 years of official figures

Method: a straight line through the logarithm of yearly exports (log-linear regression); range = ±1 standard error.

Biggest buyer countries

By value in 2025-26. Change is against 2024-25.

Name2025-26Change
1BangladeshUS$ 1.39 bn-17.1%
2ChinaUS$ 457 mn+111.6%
3EgyptUS$ 236 mn+54.3%
4PeruUS$ 155 mn-1.9%
5VietnamUS$ 123 mn-21.2%
6PortugalUS$ 116 mn-6.2%
7South KoreaUS$ 76.1 mn-4.2%
8ColombiaUS$ 64.9 mn-17.4%
9Sri LankaUS$ 63.3 mn-14.5%
10ItalyUS$ 47.9 mn-25.1%
11TürkiyeUS$ 38.9 mn-23.8%
12GermanyUS$ 32.2 mn-11.1%

Where demand is rising and falling

Only countries that buy at least US$ 1 million or 1% of India’s exports of this product. Change from 2024-25 to 2025-26.

High demand

  1. ChinaUS$ 216 mn → US$ 457 mn+111.6%
  2. EgyptUS$ 153 mn → US$ 236 mn+54.3%

Low demand

  1. MauritiusUS$ 40.3 mn → US$ 20.8 mn-48.4%
  2. ThailandUS$ 36.5 mn → US$ 25.9 mn-29.1%
  3. ItalyUS$ 64 mn → US$ 47.9 mn-25.1%
  4. TürkiyeUS$ 51 mn → US$ 38.9 mn-23.8%
  5. VietnamUS$ 157 mn → US$ 123 mn-21.2%
  6. ColombiaUS$ 78.6 mn → US$ 64.9 mn-17.4%
  7. BangladeshUS$ 1.68 bn → US$ 1.39 bn-17.1%
  8. Sri LankaUS$ 74 mn → US$ 63.3 mn-14.5%

Which forms sell, and at what price

India’s exports by 8-digit tariff line, 2025-26. Average price = total value ÷ total quantity (TradeStat): the average of every shipment on that line, not the price of any one deal.

Tariff lineValue 2025-26ChangeQuantityAverage price
Cotton yarn,, single, of combed fibres, 85% or more by weight of cotton, less than 232.56 but not less than… — grey5205 23 10US$ 949 mn-10.1%3,38,857 tonnesUS$ 2.80 per kgwas US$ 3.02
Cotton yarn,, single, of combed fibres, 85% or more by weight of cotton, less than 192.31 but not less than… — grey24015205 24 10US$ 613 mn+2.1%2,01,213 tonnesUS$ 3.05 per kgwas US$ 3.31
Cotton yarn,, single, of combed fibres, 85% or more by weight of cotton, less than 714.29 but not less than… — grey5205 22 10US$ 452 mn-2.8%1,70,050 tonnesUS$ 2.66 per kgwas US$ 2.88
Cotton yarn,, single, of uncombed fibres, 85% or more by weight of cotton, less than 714.29 but not less… — grey5205 12 10US$ 339 mn+10.7%1,52,171 tonnesUS$ 2.23 per kgwas US$ 2.37
Cotton yarn,, single, of uncombed fibres, 85% or more by weight of cotton, less than 232.56 but not less… — grey5205 13 10US$ 124 mn-19.5%44,951 tonnesUS$ 2.76 per kgwas US$ 2.81
Cotton yarn,, multiple or cabled, of uncombed fibres, 85% or more by weight of cotton, 714.28 to 232.56… — grey5205 32 10US$ 95.3 mn+6.8%36,203 tonnesUS$ 2.63 per kgwas US$ 2.83
Cotton yarn,, single, of uncombed fibres, 85% or more by weight of cotton, less than 192.31 but not less… — grey5205 14 10US$ 80.5 mn+66.7%27,870 tonnesUS$ 2.89 per kgwas US$ 3.08
Cotton yarn,, single, of combed fibres, 85% or more by weight of cotton, less than 106.38 but not less than… — other5205 27 90US$ 71.5 mn-12.1%13,991 tonnesUS$ 5.11 per kgwas US$ 5.25
Cotton yarn,, multiple or cabled, of combed fibres, 85% or more by weight of cotton, 192.30 to 125 decitex… — grey5205 44 10US$ 57.2 mn+7.5%16,092 tonnesUS$ 3.56 per kgwas US$ 3.77
Others-of-sngl yrn of combd fbrs msrng betwn 106.38 and 125.00 dctx and 80 to 94 mtrc no.5205 26 90 · Cotton yarn,, single, of combed fibres, 85% or more by weight of cotton, less than 125 but not less than…US$ 55 mn-9.2%14,840 tonnesUS$ 3.70 per kgwas US$ 3.92
Cotton yarn,, multiple or cabled, of combed fibres, 85% or more by weight of cotton, less than 83.33… — grey5205 48 10US$ 47.4 mn-11.1%4,529 tonnesUS$ 10.45 per kgwas US$ 10.97
Cotton yarn,, single, of combed fibres, 85% or more by weight of cotton, measuring less than 83.33 decitex… — other5205 28 90US$ 47.1 mn+2%9,539 tonnesUS$ 4.94 per kgwas US$ 5.40
Cotton yarn,, single, of uncombed fibres, 85% or more by weight of cotton, measuring 714.29 decitex or… — grey5205 11 10US$ 34.5 mn-37.2%18,636 tonnesUS$ 1.85 per kgwas US$ 2.08
Cotton yarn,, multiple or cabled, of combed fibres, 85% or more by weight of cotton, 714.28 to 232.56… — grey5205 42 10US$ 29.9 mn-13%9,293 tonnesUS$ 3.21 per kgwas US$ 3.49

The world market

Each country’s own recorded exports and imports in UN Comtrade, 2023 (the latest year nearly every country has reported).

World imports
US$ 8.7 bn
2023
India among exporters
#1
of 103 countries
India’s share of world exports
29.7%
US$ 3.5 bn
Left for others to win
US$ 8.29 bn
exported by other countries

Top exporters — your competitors

  1. 1IndiaUS$ 3.5 bn 29.7%
  2. 2Viet NamUS$ 2.24 bn 19%
  3. 3UzbekistanUS$ 1.43 bn 12.1%
  4. 4PakistanUS$ 1.03 bn 8.7%
  5. 5USAUS$ 917 mn 7.8%
  6. 6ChinaUS$ 611 mn 5.2%
  7. 7TürkiyeUS$ 451 mn 3.8%
  8. 8IndonesiaUS$ 268 mn 2.3%
  9. 9MalaysiaUS$ 202 mn 1.7%
  10. 10ItalyUS$ 169 mn 1.4%

Biggest buyers in the world

  1. 1ChinaUS$ 4.07 bn 46.7%
  2. 2TürkiyeUS$ 638 mn 7.3%
  3. 3PortugalUS$ 308 mn 3.5%
  4. 4ItalyUS$ 305 mn 3.5%
  5. 5Rep. of KoreaUS$ 279 mn 3.2%
  6. 6EgyptUS$ 235 mn 2.7%
  7. 7Viet NamUS$ 218 mn 2.5%
  8. 8JapanUS$ 165 mn 1.9%
  9. 9PeruUS$ 155 mn 1.8%
  10. 10GermanyUS$ 150 mn 1.7%

Opportunity: what these countries buy from the world, and from India

Each country’s own recorded imports in UN Comtrade, latest year it has reported. The long light part of each bar is demand other countries are filling today.

ChinaUS$ 3.26 bnIndia 9.4% · gap US$ 2.96 bn
ItalyUS$ 287 mnIndia 23.5% · gap US$ 219 mn
VietnamUS$ 273 mnIndia 27.6% · gap US$ 198 mn
South KoreaUS$ 279 mnIndia 31.1% · gap US$ 193 mn
EgyptUS$ 289 mnIndia 42.8% · gap US$ 165 mn
JapanUS$ 143 mnIndia 20.5% · gap US$ 113 mn
GermanyUS$ 132 mnIndia 30.6% · gap US$ 91.9 mn
IndonesiaUS$ 93.3 mnIndia 16.7% · gap US$ 77.7 mn
United States of AmericaUS$ 79.9 mnIndia 16% · gap US$ 67.2 mn
FranceUS$ 64.7 mnIndia 5.1% · gap US$ 61.3 mn

TradeStat’s 2023-24 quantities are double-counted, so that year is left out of the price. Sources: TradeStat — Export Import Data Bank, Department of Commerce · UN Comtrade database (United Nations Statistics Division) · Figures taken 29 October 2026.

Step by step

How to export cotton yarn

India is one of the world's largest cotton growers and spinners, and one of the biggest exporters of cotton yarn. Its main rivals in the yarn trade are Pakistan, Vietnam, Uzbekistan and China, which is also a large buyer. Demand comes from garment and fabric mills in countries that weave and knit but do not spin enough yarn themselves, above all Bangladesh. Prices follow raw cotton closely, so the trade is cyclical. Openings for a small exporter lie in steady supply of a few counts to mid-sized mills in South Asia, and in traceable and organic yarn for brands that must prove where their cotton came from.

  1. 01Pick counts and a mill

    Choose one or two counts you can supply every month. Agree price, test parameters and lead time with a spinning mill, or use your own mill.

  2. 02Send samples and test report

    Courier sample cones with the mill test report. The buyer tests them in its own lab and approves a standard.

  3. 03Sign the contract

    Write count tolerance, CSP or RKM minimum, CV% limit, packing, Incoterm, payment (often a sight LC) and which lab settles disputes.

  4. 04Produce and test each lot

    Spin the lot, test it, keep retained samples, and arrange pre-shipment inspection if the buyer asks.

  5. 05Pack, book and clear customs

    Pack by lot, book the container, file the shipping bill under the right HS 5205 line and claim RoDTEP and drawback in it.

  6. 06Present documents under the LC

    Submit invoice, packing list, bill of lading, certificate of origin and test report to your bank exactly as the LC states.

  7. 07Collect payment and close the file

    Get paid, receive the e-BRC, and keep lot samples until the buyer has used the yarn without complaint.

Meet buyers

Trade fairs

Questions

Questions about exporting cotton yarn

What is CSP and why do buyers ask for it?
CSP is the count-strength product: skein breaking strength multiplied by count. It tells the buyer how well the yarn will run on looms. Quote the CSP your mill can hold for every lot, not its best result.
Can I export yarn without owning a mill?
Yes, as a merchant exporter. You need IEC, GST, a TEXPROCIL RCMC and a written supply agreement with the mill that includes its test reports.
Is OEKO-TEX compulsory for yarn?
Not by law. Mills that supply European or US brands often require it, so ask the buyer before you pay for certification.
How do I avoid weight claims?
Weigh at packing, record the moisture level, write net weight per carton, and agree in the contract how moisture and tare are treated.
Which payment term is usual?
For Bangladesh and many South Asian mills, a sight or usance letter of credit is common. With a new buyer, avoid open account until you have a payment history, and consider ECGC cover.
Sources (7)
  1. TEXPROCIL — official site
  2. OEKO-TEX — STANDARD 100
  3. Global Organic Textile Standard (GOTS)
  4. US CBP — Uyghur Forced Labor Prevention Act
  5. SITRA — The South India Textile Research Association
  6. NITRA — Northern India Textile Research Association
  7. NABL — search for accredited testing laboratories

Who buys Indian cotton yarn

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