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Huge US subsidies guilty of dip in global cotton crop – Mr Rabbani
Mar '09
Mr Ghulam Rabbani
Mr Ghulam Rabbani
According to a United States Department of Agriculture data released last week, the overall cotton production worldwide has contracted, due to a lower than projected cotton production figures in China and Pakistan in the on-going cotton season.

Global cotton production has plunged by around 880,000 bales (1 bale=175 kg), due to a fall in output in Pakistan to the tune of 200,000 bales and 700,000 bales in China, due to which world production of cotton fell to 108 million bales.

India also witnessed a fall in cotton crop of nearly 200,000 bales, followed by Brazil with 100,000 bales. Cotton consumption by major cotton consuming enterprises, on the other hand also plummeted by 1.50 million bales to 111 million bales.

Fibre2fashion spoke to Mr Ghulam Rabbani, a Pakistan based cotton merchant of repute and who also serves on the board of the Karachi Cotton Association as a Director, to understand the reasons behind the cotton production declining trends.

Mr Rabbani said, “The US Government provides huge subsides to its farmers, particularly the cotton farmers, due to which they are able to sell their cotton crop at lower rates, but which is detrimental to the interests of cotton farmers from other countries”.

He continued by saying, “The Doha rounds of talks have been stalled, due to the reluctance of the US, to reduce those cotton subsidies, despite having committed to do so in the past, but on the other hand US demands that other countries cut their agriculture subsidies”.

“All these factors put together have led to farmers discarding cultivation of cotton crops, since they are not able to generate remunerative prices for the crop that they sow”, Mr Rabbani categorically said, before closing the interview.

Fibre2fashion News Desk - India

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