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 21st Jun 2021

Congestion at China's Yantian Port to have ripple effect across world

After China's Yantian Port announced it would stop accepting new...

Pic: Shutterstock

Textiles | On 21st Jun 2021

S African textile workers to get average wage rise of 5.2% from Aug 1

The Southern African Clothing & Textile Workers' Union (SACTWU) has...

Pic: Shutterstock

Apparel/Garments | On 21st Jun 2021

Prime Content| Sri Lanka's textile & garment exports up 28.7% in Jan-April '21

Sri Lanka’s earnings from textiles and garments exports increased by...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Marry craft and utility

Textile Industry, Head honchos

Textile Industry
Head honchos

Money never disappears-it just finds new opportunities

Textile Industry, Head honchos

Textile Industry
Head honchos

Verticals like fast fashion won’t completely adopt personalisation on...

Seema Mishra,

Seema Mishra

Set up in January 2020 by <b>Seema Mishra</b>, the Kasrawad Art Cluster...

Simone Morgante,

Simone Morgante

Based out of Como, Italy, and with technological expertise of nearly 70...

Dhruv Toshniwal & Udit Toshniwal,

Dhruv Toshniwal & Udit Toshniwal

Launched a year ago, Fashions Pvt Limited conceptualises and sees D2C...

Pranesh Sridharan & Berndt Koll, Lenzing

Pranesh Sridharan & Berndt Koll
Lenzing

The Lenzing Group produces Lenzing Lyocell and Modal cellulosic fibres of...

Madison Maxey, Loomia

Madison Maxey
Loomia

Loomia designs and manufactures soft circuit systems that can be produced...

Shlomzion Chen, Seevix

Shlomzion Chen
Seevix

Seevix Material Sciences Ltd, which develops and manufactures synthetic...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

Megha Kumari & Jigar Mali, Label Megha & Jigar

Megha Kumari & Jigar Mali
Label Megha & Jigar

New Delhi based label Megha &amp; Jigar blends India's unique handcrafts...

Sandeep Gonsalves & Sarah Gonsalves, Sarah & Sandeep

Sandeep Gonsalves & Sarah Gonsalves
Sarah & Sandeep

Established in 2012, Sarah &amp; Sandeep is a luxury menswear label...

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 2021

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


Advanced Search