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

Pic: Shutterstock

Textiles | On 22nd Feb 2020

Pharr sells Pharr High Performance to Coats Group

Pharr, a provider of differentiated textile products and assorted...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

TOAI highlights importance of textiles in auto industry

The first edition of the conference 'Textile Opportunities in a...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

Cocona's 37.5 fibres to have new biodegradable additive

All of the 37.5 staple fibres and filament yarns by Cocona, will now...

Interviews View All

Sunil Kumar Sharma, Loknayak JPNSSSG Ltd

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Janak Dhamanwala & Sunil Dhamanwala, Jansun

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Abhishek Ganguly, Puma India

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Wolfgang Muller,

Wolfgang Muller

Mayer & Cie is a leading global manufacturer of circular knitting...

Amol Bhagwati,

Amol Bhagwati

A textile finishing solution provider, Inspiron Engineering Private...

Vasudevan LK,

Vasudevan LK

Epson is a world leader in digital imaging and printing solutions....

Razvan Popescu, Directa Plus SpA

Razvan Popescu
Directa Plus SpA

Directa Plus is one of the largest producers and suppliers worldwide of...

Paige Mullis, Glen Raven Inc

Paige Mullis
Glen Raven Inc

Paige Mullis discusses the expansion plans of Glen Raven Inc in India, and ...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, a global association of the nonwoven fabrics industry, has been...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Rupa Sood and Sharan Apparao, Nayaab

Rupa Sood and Sharan Apparao
Nayaab

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

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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


February 2020

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


Advanced Search