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Lower cotton acreage in China & US could prove disastrous
Apr '13
A recent survey reveals that Chinese domestic cultivation of cotton area is declining to set the lowest record in 10 years, Experts say that reduction of cotton acreage will mean tighter priced raw materials for the textile industry. 
According to the survey conducted by China Cotton Association, 2013 cotton area is expected to decline 6.8 percent to 68.18 million Mu, and will be the first time for China's cotton area to decline below 70 million Mu in a decade (one hectare equals 15 Chinese Mu). Estimates released by USDA  also indicate 18% dip in US cotton cultivation in 2013. 
Currently demand and supply of global cotton is normal. However if the estimates prove to be right, it could [rove disastrous as demand could outpace supply. This means the global textile sector may face more troubled times in the near future 
According to the balance sheet of global cotton production and consumption forecast released by Cotlook in February, 2013/14 global cotton production would be 24.299 million tons, down 
1.904 million tons compared with current year. Global consumption is expected to be 23.154 million tons, up 487,000 tons. 

Fibre2fashion News Desk - China

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