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Ethiopian cotton output falls short of domestic demand
Jan '13
Problems faced by cotton farmers in selling their produce during 2011-12 have resulted in a drastic fall in Ethiopia’s current fiscal’s cotton output, which is not enough to meet the domestic textile industry’s demand.
This was shared during the general meeting of the Ethiopian Cotton Producers, Ginners and Exporters Association (ECPGEA).
The Government pegs the local textile industry’s cotton demand for 2012-13 fiscal at around 60,000 tons, while the production is expected to come to about 47,000 tons, a shortfall of 23,000 tons, allafrica.com reported.
However, the Cotton Association claims that the shortfall is considerably higher than Government’s estimates.
Last fiscal, Ethiopia produced 11,714 tons in excess of forecasted demand of 68,000 tons of cotton. As a result, the domestic textile sector was unable to consume all the cotton produced by growers.
Citing financial problems, textile units procured only 22 percent of the total output till March 2012, following which, the Government revoked the cotton export ban, effective since 2010. This however did not prove to be of much help to the growers, as global market too was in the clutch of financial crisis.

Fibre2fashion News Desk - India

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