Home / Knowledge / News / Textiles / NCC says cotton industry to face difficult economic climate
NCC says cotton industry to face difficult economic climate
17
Feb '09
National Cotton Council Economist Dr. Gary Adams
National Cotton Council Economist Dr. Gary Adams
In presenting the NCC's 2009 Economic Outlook to delegates attending the NCC's 71st Annual Meeting, Adams said, “For the 2009 marketing year, reductions in cotton production will be evident in more countries than observed in previous years.

Also, mill use is expected to recover based on independent economic projections calling for recovery by calendar 2010.” He reiterated, though, that these projections are dependent on the wildcards of overall global economic performance and impacts of policy changes.

In describing the world outlook for 2009, Adams said world cotton production is projected to fall 4.3 million bales to 105.5 million bales – the smallest crop since 2003. World mill use will recover to 113.8 million bales. The smaller crop and increased mill use would allow stocks to decline to 56.3 million bales from 62.2 million in 2008.

Looking at the 2009 world cotton market, Adams said China and India will continue to be important players. He said both countries governments have made policy decisions that have moved significant amounts of the 2008 crop into government stocks – and how they handle those stocks' release will affect U.S. exports.

For example, China is estimated to end the 2008 marketing year with 19.4 million bales of stocks, with a significant amount in government reserves.

“If the Chinese government decides to aggressively liquidate those reserves in the coming months, it could dramatically alter their import requirements,” Adams said. He noted that for the 2009 marketing year, a slight recovery in China's mill cotton use to 47.2 million bales is expected along with a cotton crop decline to 32.6 million bales from 36.5 million in 2008 – which would result in China importing 9.6 million bales in the 2009 marketing year.

On the other hand, he said India may return as a more significant exporter in 2009 as that country's production is expected to be near current levels with only a slight recovery in mill use.

The economist told delegates the NCC sees a slight contraction in U.S. cotton offtake for 2009 with U.S. cotton exports projected at 11.2 million bales and U.S. mill cotton use at 3.9 million bales.

“Heading in 2009, the U.S. textile industry remains under pressure from a combination of factors,” Adams said. “Retail purchases declined in calendar 2008 and likely will fall further in 2009. In addition, the limits on imports from China in 34 textile categories expired at the end of 2008.”

On a positive note, Adams said the much-needed economic assistance included in the 2008 Farm Bill has been implemented and textile mills are submitting the necessary documentation to receive 4 cents per pound on their cotton consumption.

Also, the United States' government has begun monitoring certain U.S. textile and apparel imports from China in a move aimed at preventing a repeat of the disruptive surge of Chinese textile/apparel exports to thiscountry following the discontinuation of quotas in 2005.


Must ReadView All

'Requirement of polyester filament yarn is increasing'

Textiles | On 19th Jun 2018

'Requirement of polyester filament yarn is increasing'

The requirement of polyester filament yarn (PFY) is increasing as it...

Courtesy: SAC

Textiles | On 19th Jun 2018

SAC to release pilot of Higg Facility Social Labour Module

The Sustainable Apparel Coalition (SAC) will release this year a...

Courtesy: Tim Savage from Pexels

Textiles | On 19th Jun 2018

Da Lat begins construction of $50mn wool yarn factory

Da Lat Worsted Spinning Limited Company has begun construction of a...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Top executives
Textile industry

Defining MSMEs on the basis of turnover makes it simpler to do business

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Harmeet Singh

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

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Aditi Somani
Aditi Somani

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

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

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search