Global Apparel Market – An Overview | Watch NOW! | Ad
Home / Knowledge / News / Cotton / No end in sight to global cotton glut
No end in sight to global cotton glut
06
Aug '15
The glut in the global cotton stocks is expected to continue in 2015-16, says the International Cotton Advisory Committee (ICAC). In 2014-15, world ending stocks are estimated to have risen by 9 per cent to 22 million tonne, reflecting a stock-to-use ratio of 90 per cent, the ICAC said in a press release.

From 2010-11 to the end of 2014-15, the world has accumulated 13.4 million tonnes of stock due to production exceeding consumption. In 2015-16, stocks are projected to decrease 5 per cent to just under 21 million tonne, reducing the excess volume by around 1 million tonne. After increasing 16 per cent to 9.4 million tonne in 2014-15, stocks held outside China are expected to decrease by 4 per cent, to 9 million tonne, by the end of 2015-16.

Much of the world's excess stock is held by the Chinese government from purchases made by the China National Cotton Reserve Corporation under its stockpiling policy from 2011-2014. The Reserve made its final purchases of the 2013-14 crop in March 2014 with sales continuing through August 2014, ending with an accumulated volume of around 11.3 million tonne. On July 10, the Chinese government started to sell its stockpiles at prices close to the current domestic market price in the hopes of maintaining market stability. The cumulative volume of cotton sold through the end of July is around 40,000 tonne.

India's ending stocks are estimated at 2.2 million tonne in 2014-15, which is the second largest volume of stocks. Part of the increased volume is held by the government-owned Cotton Council of India (CCI), which procured stocks under its minimum price support programme. Government purchases in 2014-15 are estimated at around 1.5 million tonne, and sales through the end of July at around 650,000 tonne. However, exports from India have fallen by 51 per cent to 980,000 tonne, also contributing to the buildup of stocks.

Stocks in 2015-16 are projected to decrease as consumption overtakes production for the first time in five seasons. World production in 2015-16 is forecast 9 per cent lower to 23.8 million tonne. Output is expected to fall from 2 per cent to 16 per cent in the five largest producing countries. Rising costs of production and a decreased subsidy in China are likely to lead to a 16 per cent drop in production to 5.4 million tonne. India's production is forecast at just 2 per cent lower at 6.4 million tonne due to improved yields from better monsoon this season and low prices for competing crops reducing the loss of cotton area.

Global consumption is projected to rise by 2 per cent to 24.9 million tonne in 2015-16. China's consumption is forecast to remain stable at around 7.7 million tonne. However, mill use is expected to grow in the next four largest consuming countries.


Must ReadView All

Courtesy: Amazon

Apparel/Garments | On 23rd Sep 2018

Consumers in Turkey get access to Amazon

Amazon has launched in Turkey giving customers in the country...

Value in omni-channel retail with Flipkart buying: Walmart

Apparel/Garments | On 23rd Sep 2018

Value in omni-channel retail with Flipkart buying: Walmart

With the acquisition of Flipkart, Walmart sees great value in...

E-com to result in common SE Asian consumer market: BCG

Textiles | On 23rd Sep 2018

E-com to result in common SE Asian consumer market: BCG

The rapid spread of e-commerce and digital technologies is binding...

Interviews View All

Anavila Misra, Anavila Collection

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Top executives, Textile industry

Top executives
Textile industry

Overall, Union budget 2018-19 is very balanced

Darshan Mehta, Infinium Polychem

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Mark Tokuhara,

Mark Tokuhara

Japan-based FitJoy, a shoe brand for women, has been in the footwear...

Nitesh Mittal,

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Tom Adeyoola,

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Isabel Herranz, European School of Business & innovation

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

Giulio Cesareo, Directa Plus SpA

Giulio Cesareo
Directa Plus SpA

Established in 2005, Direct Plus SpA, is one of the largest producers and...

Ashok Desai, Bombay Textile Research Association

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Rupa Sood and Sharan Apparao, Nayaab

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

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


September 2018

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

news category


Related Categories:

Advanced Search