Page 17 - April-May-2018

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Increase in cotton

consumption globally

Recovery continues in cotton production for over the last few months as the season has been
2017/18 with a projected 11% growth due to underway. From the season low of 77 cents per
increased area to a projected 25.4 million tons. pound at the start of season, prices are at a season
Following the sharp drop in production in 2015/16, high at the end of this calendar year up to 88 cents
the 2016/17 production recovered by 7% to 23 per pound. The current season average of 80 cents AD
million tons. Production in the USA for the current per pound is lower than the 2016/17 average of 83
season is expected to increase 25% to 4.7 million cents per pound. With a lower international price
tons, a 930 thousand increase. India remains the from the previous season and the rising price of
world’s largest producer with 2017/18 production competing fibers, global consumption is expected
expected to be 6.2 million tons with 8.7% growth. to grow. After stagnating in 2016/17, global cotton
The second largest producer, China, has production demand is expected to increase 3% in 2017/18 to
currently projected at 5.2 million tons with a 7.1% 25.2 million tons. Chinese mill use is expected to
increase. Pakistan’s production projections for remain stable at 8.1 million tons, while India and
2017/18 show a 11.5% increase to 1.9 million tons. Pakistan are expected to increase 3% and 4%
Production increase in Turkey is estimated to grow respectively. Consumption in Vietnam is expected
18% to 829,000 tons. Other major cotton producing to grow 12% to 1.3 million tons. Moderate growth of
countries are expected to have positive growth 2-3% is expected for other major consumers including
attributed to increased area and yields. Bangladesh, Turkey and the United States.

Cotton prices have remained high in 2017/18 at an The production of cotton has been decreasing this
average of 83.5 cents per pound. Higher prices are year with 11.581 million bales produced, but with a
again expected to impact planting decisions to consumption of 11.3 million bales. Cotton is a
expand area under cotton for the 2018/19 season. major cash crop and the lifeline of textile industry. It
World area under cotton has averaged 32.4 million accounts for 8.2 per cent of the value-added in the
hectares over the last ten years and is projected to agriculture sector and about two per cent to GDP,
grow moderately during the next season with adds over $2.8 billion to the national economy.
support policies being passed in the US. Planted Concentrating on basic issues of Pakistan “The
cotton area is expected to increase in 2018/19 by canals of cotton growing areas including Rahim Yar
11% in the US to 5.08 million hectares, however Khan, Rajanpur, Dera Ghazi Khan are dry,
drought conditions remain a concern for the cotton government should do something to provide
area in West Texas which represents approximately irrigation water, this will help in improving yield,”.
25% of the US production. Planted area in India is
expected to decrease to 11.9 million hectares in Only option is to increase production by applying
2018/19. Chinese planted area is expected to modern cotton technologies that have successfully
remain stable based on the continuation of been adopted in many countries to improve crop
support policies. yield. Need to commercialize and extension
department should pay its role in dissemination of
International cotton prices have continued to rise BT seed and growing technology.

April/May 2018