Home / Knowledge / News / Textiles / Subsidies to cotton industry declines in 2013/14: ICAC
Subsidies to cotton industry declines in 2013/14: ICAC
22
Sep '14
Subsidies to the cotton industry have declined in 2013/14 compared to a year earlier, according to a new report released by the International Cotton Advisory Committee (ICAC).
 
The report titled ‘Production and Trade Policies Affecting the Cotton Industry’, prepared by the ICAC secretariat estimates subsidies, including direct support to production, border protection, crop insurance subsidies, and minimum support price mechanisms, at US$ 6.5 billion in 2013/14 cotton year.
 
The estimated amount of subsidies to the cotton industry in 2013/14 is lower compared to the record $7.4 billion subsidies in 2012/13.
 
Under the heading ‘Government Support to the Cotton Industry’, the report states that a total of ten countries provided subsidies in 2013/14 to the cotton industry, and the subsidies averaged 26 cents per pound, the same as in 2012/13.
 
The ICAC Secretariat has been reporting government measures in cotton in 1997/98 season, and it has found that there is a strong negative correlation between subsidies and cotton prices. “In years when prices are high, subsidies tend to decline and in years when prices are low, subsidies tend to rise,” the report mentions.
 
In 2013/14 season too, the negative correlation continued. As the Cotlook A Index increased from an average of 88 cents per pound in 2012/13 to an average of 91 cent per pound in 2013/14, subsidies provided to cotton growers declined.
 
In some countries, such as Brazil, India, Pakistan and Mexico, minimum support price (MSP) programs were not triggered during 2013/14 because market prices were above the government intervention prices.
 
The share of world cotton production receiving direct government assistance, including direct payments and border protection, increased from an average of 55 percent between 1997/98 and 2007/08, to an estimated 84 percent in 2008/09. During 2009/10 through 2013/14, the share declined and averaged 47 percent. In 2013/14 the share of production receiving direct assistance is estimated at 44 percent.
 
Some countries provided subsidies for cotton inputs in 2013/14, especially for fertilizers, storage, transportation, classing services and other marketing costs, the report mentions. (RKS)
 

Fibre2fashion News Desk - India


Must ReadView All

Bangladesh garment exports rise 7.46% in July-Nov '17

Apparel/Garments | On 11th Dec 2017

Bangladesh garment exports rise 7.46% in July-Nov '17

Readymade garment exports from Bangladesh increased 7.46 per cent in...

Karl Mayer opens new workshop in Vietnam

Textiles | On 11th Dec 2017

Karl Mayer opens new workshop in Vietnam

Karl Mayer, Germany’s leading textile machinery firm, has announced...

Cotton USA promotes cotton at TITAS Taiwan tradeshow

Textiles | On 11th Dec 2017

Cotton USA promotes cotton at TITAS Taiwan tradeshow

Cotton USA, which promotes US cotton fibre and manufactured cotton...

Interviews View All

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.2%
No
12.1%
Skip
18.7%

Total Votes: 91

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.5%
No
30.8%
Skip
7.7%

Total Votes: 91

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.8%
No
9.9%
Skip
3.3%

Total Votes: 91

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.3%
No
8.8%
Skip
9.9%

Total Votes: 91


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search