The share of cotton yarn exports to the total cotton textile exports basket inched forward in June following an improvement in the offtake of finer counts. Exports to Hong Kong, Japan and Mauritius showed good recovery during the month.

India exported 36.68 million kg cotton yarn worth Rs 435.76 crore in June compared with 39.29 million kg yarn worth Rs 439.48 crore shipped during the same period last year.

The country's cotton yarn exports since the beginning of 1998 calendar have been substantially lower following the major currency crisis that gripped the Southeast Asian countries.

The high unit value realisation of Rs 118.80 for June 1998 (Rs 11.85 in June '97 and Rs 114.55 in May 1998) played a significant part in the overall improvement. Sources in the industry attributed the increase in realisation to increase in the export of finer counts. There is also a claim that the devaluationof rupee would have reflected in the realisations since it would take some time for the importers to re-negotiate on a lower rate.

According to sources, there is still high pressure on the value of coarser counts of yarn. Out of the total yarn exports of Rs 2,785.62 crore for the first six months of 1998 (Rs 3,150.30 crore in January-June 1997), Hong Kong imported yarn worth Rs 463.89 crore, Bangladesh's import was Rs 394.46 crore, that of Japan was Rs 120.14 crore and Mauritius imported Rs 175.94 crore worth of yarn from India. The share of rest of Asia (excluding Bangladesh) stood at 18.57 per cent.

Coimbatore's cotton yarn exporters expect exports to remain steady in the coming months, provided Asian currencies do not witness further free fall.