Home / Knowledge / News / Textiles / Low cotton prices trigger govt support measures: ICAC
Low cotton prices trigger govt support measures: ICAC
18
Nov '14
Global cotton prices which have plummeted in recent months, has triggered ‘Minimum Support Price’ measures from governments of large cotton producing countries, says ICAC.

In 2013/14, the Cotlook A Index averaged 91 cents/lb, well above the long-term average of around 70 cents/lb.

However, prices have since plummeted, and the ICAC Secretariat has forecast world average price to be around 74 cents/ lb this season.

“Given low prices and high production costs, many governments of large cotton-producing countries are taking measures to help growers,” ICAC informs.

China recently announced that it would provide a cotton subsidy of 2,000 Yuan/ton to growers in nine inland provinces in 2014.

India has a minimum support price system that did not go into effect in the last few seasons due to high prices, but prices have fallen enough to trigger the minimum support price this season.

In October, the Pakistani government announced a cotton support price of Rs 3,000 per 40 kilograms.

The Trading Corporation of Pakistan (TCP), which has not purchased cotton since 2005/06, will buy about one million bales of lint this month at the announced minimum support price.

World cotton production is forecast at 26.3 million tons for 2014/15, an output similar to that of last year.

While harvesting in India will likely continue into early next year, production is expected to remain stable at 6.8 million tons.

The less favourable monsoon weather lowered the average Indian yield to around 553 kg/ha and offset a 4 per cent gain in acreage.

China’s production is forecast to be down 7 per cent to 6.5 million tons due to a smaller area sown with cotton.

While rains during planting, alleviated the drought situation in the United States, allowing production to recover to 3.6 million tons.

Despite the flooding in Pakistan last month, cotton production is projected to rise 1 per cent to 2.1 million tons with an average yield of 750 kg/ha.

World cotton consumption is likely to pick up next year reaching 24.4 million tons by the end of 2014/15.

China’s total consumption is expected to be just under eight million tons, and India to be around 5.3 million tons.

Consumption in Pakistan may grow 2 per cent to 2.3 million tons, but will depend on sufficient and stable electricity supply in the regions with the highest concentration of spinning mills.

Bangladesh consumption is projected at 954,000 tons while Vietnam is expected to consume nearly 700,000 tons of cotton, up 9 per cent from 2013/14.

World trade is projected to fall 11 per cent and reach 7.9 million tons and to promote consumption of domestically grown cotton, the Chinese government is limiting the volume of cotton imports.

Chinese cotton imports are forecast to drop 36 per cent to 2 million tons in 2014/15.

However, imports elsewhere are expected to grow 8 per cent to 5.9 million tons, due to gains in South and Southeast Asia, where many consuming countries produce small quantities of cotton. (AR)

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 19th Aug 2017

New fabric interfaces to interact with computers

As computer capabilities evolve, new fabric-based interfaces are...

Textiles | On 19th Aug 2017

Brazilian cotton prices drop in first fortnight of August

Cotton prices dropped in the Brazilian market in the first fortnight...

Apparel/Garments | On 19th Aug 2017

Target to acquire Grand Junction for faster deliveries

Target Corporation has announced that it has agreed to acquire Grand...

Interviews View All

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Pranav Mishra
Huemn

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

Judy Frater
Somaiya Kala Vidya

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

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

August 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
66.7%
No
16.7%
Skip
16.7%

Total Votes: 30

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
43.3%
No
36.7%
Skip
20.0%

Total Votes: 30

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
83.3%
No
6.7%
Skip
10.0%

Total Votes: 30

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
60.0%
No
10.0%
Skip
30.0%

Total Votes: 30


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