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US exports of cotton to Southeast Asia increasing: USDA

Sep '18
Courtesy: USDA/FAS/September 2018
Courtesy: USDA/FAS/September 2018
Cotton is driving growth of the US agricultural exports to Southeast Asia. In 2017-18, cotton was the leading export (value) to Vietnam, followed by Indonesia and Thailand, the Foreign Agricultural Service of the US department of agriculture (USDA) said. In 5 years, cotton exports have accounted for over 2/3rd of the growth in US exports to the region.

In 2017-18, Vietnam, Indonesia and Thailand witnessed 10 or more per cent growth in US cotton exports compared with the previous year, buoyed by Southeast Asia’s growth as a prominent yarn and textile exporter. Vietnam leads the region in cotton imports, and is the United States' largest market for cotton, the latest USDA report titled 'Cotton: World Markets and Trade' said.

With minimal cotton production in the region, growth in spinning demand will be met through imports. In 2018-19, record imports and use are expected in Vietnam and Indonesia. Both countries are expected to continue as the top two markets for US cotton in the region. Continued strong yarn and textile exports are expected to drive this record growth, the report stated.

The forecast for cotton production during 2018-19 is likely to be led by China, Brazil, and the United States more than offsetting a reduction in Australia, the report added. Trade is projected largely unchanged on lower exports from Australia offsetting higher exports from the United States and Brazil. Higher global consumption is attributed to greater use in India. US production is raised along with exports and stocks. (RR)

Fibre2Fashion News Desk – India

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