Home / Knowledge / News / Textiles / China's cotton stocks-to-use ratio surges to record 180%
China's cotton stocks-to-use ratio surges to record 180%
24
Sep '14
courtesy: FAS/USDA
courtesy: FAS/USDA
China’s cotton stocks-to-use ratio surged to a record level of 180 percent in 2013-14, due to the Government’s price support and import policies, according to the Foreign Agricultural Service (FAS) of the United States Department of Agriculture (USDA).
 
From 2002-03 to 2008-09, China’s stocks-to-use ratio averaged just 49 percent, which implies that the current stocks are over 45 million bales above average, FAS says in its ‘Cotton: World Market and Trade’ report released this month.
 
At approximately two and a half years of U.S. production, the current Chinese cotton stocks are abnormally high, and to reduce these and return to normal levels, China would have to produce less, consume more, and/or reduce net imports. 
 
In other words, “Production would have to drop by 25 percent from the current level for six years, consumption would have to rise by 20 percent for more than six years, or imports would have to be reduced to the World Trade Organization tariff rate quota level for 16 years,” says the report.
 
In the present scenario, it will be a daunting task for the Chinese Government to implement policies to reduce its cotton stocks, and hence the excess stocks are likely to remain for a while.
 
For 2014-15, US cotton exports’ estimate is lowered by 700,000 bales to 10 million, and Uzbekistan down 150,000 bales to 2.3 million bales—both due to a decrease in production, according to the USDA.
 
India, another major cotton exporter, is also expected to export only 5.7 million bales in 2014-15, due to weaker global import demand.
 
On the other hand, Pakistan, India, Turkey and Vietnam are likely to import 1.6 million, 800,000, 3.75 million, and 3.4 million bales of cotton during the period. (RKS)
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 26th Apr 2017

Kering's consolidated revenue growth rises 31.2% in Q1

The consolidated revenue growth for luxury group Kering for the first ...

Courtesy: SKF

Textiles | On 26th Apr 2017

SKF brings predictive maintenance for machinery to India

SKF India, a global supplier of bearings, seals, mechatronics,...

Textiles | On 26th Apr 2017

Gap, Athleta to increase use of sustainable fibres

Gap, one of the world's most iconic apparel and accessories brand and ...

Interviews View All

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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