Interviews
2 US Senators push for cotton, textile industry assistance
15 Jul '20
2 min read
Pic: Shutterstock
US Senators Thom Tillis (Republican) and Mark Warner (Democrat) recently wrote a letter to majority leader Mitch McConnell and minority leader Chuck Schumer requesting that the next round of COVID-19 assistance should adequately address the magnitude of the losses felt throughout the cotton supply chain by farmers, textile mills and the merchandising segment.
“Across the agricultural sectors, the US cotton and textile industry is particularly hard hit as the COVID-19 pandemic is causing unprecedented demand destruction for cotton apparel and textiles,” wrote the Senators.
“Billions of dollars of orders have been cancelled as retail shopping outlets remain closed or operate at reduced capacity. The collapse in cotton demand is being felt across the US cotton industry from textile manufacturers to merchandisers to cotton producers, and all segments in between. The viability of the farms and businesses, and the jobs they represent, are at risk of not surviving this crisis,” a National Cotton Council press release quoted the letter as saying.
“When Congress considers additional relief efforts in response to COVID-19, we believe any package should ensure USDA’s next round of agricultural assistance will adequately address the magnitude of the losses felt throughout the cotton supply chain by cotton farmers and include critical relief for textile mills and the cotton merchandising segment, all of which are facing unprecedented economic losses,” the Senators added.
From March through May, the Census Bureau reports that clothing sales are down by $44 billion, or 67 per cent, relative to the same three-month period in 2019. US textile mills report a 90 per cent drop in orders for the yarn they produce and are consuming cotton at a seasonally-adjusted annual rate of just 250,000 bales, down over 90 per cent from year-ago levels.
Cotton prices fell by as much as 30 per cent since early this year, and that decline represents a loss in market value of approximately $160 per acre of cotton.
“Across the agricultural sectors, the US cotton and textile industry is particularly hard hit as the COVID-19 pandemic is causing unprecedented demand destruction for cotton apparel and textiles,” wrote the Senators.
“Billions of dollars of orders have been cancelled as retail shopping outlets remain closed or operate at reduced capacity. The collapse in cotton demand is being felt across the US cotton industry from textile manufacturers to merchandisers to cotton producers, and all segments in between. The viability of the farms and businesses, and the jobs they represent, are at risk of not surviving this crisis,” a National Cotton Council press release quoted the letter as saying.
“When Congress considers additional relief efforts in response to COVID-19, we believe any package should ensure USDA’s next round of agricultural assistance will adequately address the magnitude of the losses felt throughout the cotton supply chain by cotton farmers and include critical relief for textile mills and the cotton merchandising segment, all of which are facing unprecedented economic losses,” the Senators added.
From March through May, the Census Bureau reports that clothing sales are down by $44 billion, or 67 per cent, relative to the same three-month period in 2019. US textile mills report a 90 per cent drop in orders for the yarn they produce and are consuming cotton at a seasonally-adjusted annual rate of just 250,000 bales, down over 90 per cent from year-ago levels.
Cotton prices fell by as much as 30 per cent since early this year, and that decline represents a loss in market value of approximately $160 per acre of cotton.
Fibre2Fashion News Desk (DS)
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