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Cotton: higher global Production and Stocks

For 2019/20 USDA’s first world cotton projections area also rising.
unveiled last month that it is anticipated the
production will raise world stocks slightly by 1 World trade is projected to expand, bring it near
million bales, by exceeded consumption. the record levels seen in 2011/12 and 2012/13.
Much of the increase is expected in China as
The China import, consumption and production smaller sales from the State Reserve reduce
outlook shows projected rise, while stocks are available domestic supply, meaning that higher
expected to fall for the fifth consecutive year. With imports will be needed to close the gap.
the decline in China’s stocks, stocks outside of
China are projected to increase significantly. As a Global consumption is expected to continue
result, the average A-Index and the season-average growing, but at a rate slightly below its long-run
U.S. farm price are expected to decline. average based on weaker global economic growth.

U.S. 2019/20 cotton production is expected at 22.5 Production for 2018/19 is forecast up slightly, led
million bales, based on higher planted area and by larger crops in Brazil and Pakistan more than
sharply lower abandonment. This would be the offsetting lower production in Australia. Trade is
third-highest production on record; if realized, the projected down slightly on lower imports for
expanded production would account for half of Indonesia and lower exports for Brazil. Global use
growth in global production. World cotton is virtually unchanged. The U.S. forecast is
production is expected to rise 6.8 percent with unchanged. The U.S. season-average farm price is
yields rebounding in several countries and lowered 2 cents to 70 cents/lbs.

Textile division constitutes task

WWF to help cotton growers to force to formulate policy 2019-24

increase production The textile sector in Pakistan has an overwhelming - Mr Musadaq Zulqarnain, Interloop

impact on the economy, contributing 57% to the
- Mr Amir Fayyaz, CEO & Executive Director,
country’s exports. In today’s highly competitive - Mr Shahid Abdullah, Director, Sapphire Textile Mills Ltd
The World Wildlife Fund (WWF) will help the south consultation was making cotton crop more global environment, the textile sector needs to Kohinoor Mills
Punjab cotton growers to improve production and environment-friendly, reducing expenses and upgrade its supply chain, improve productivity, and - Mr Bashir Ali Muhammad, Chairman & CEO, Gul
increase per acre yield under a Memorandum of helping the growers for better cultivation and maximize value-addition to be able to survive. The Ahmed Textiles
Understanding (MoU) signed between the growth of cotton.” objectives of the Textile Industry Division are to - Mr Javed Bilwani, J.B. Industries
organization and the Punjab Agriculture formulate strategies and programme to enable the - Mr Ahsan Bashir, Sooraj Cotton Mills
Department. Dr Zahid Mehmood further highlighted that the textile sector to meet these challenges and attain - Mr Naveed Ahmed, Indus Textile
challenges being faced by cotton crop and said, global competitiveness. - Mr Ahmed Kamal, CEO, Kamal Group
The WWF would hold workshops with the growers “The use of most modern ecology was inevitable - Mr Shahbir Ahmed, Feroze 1888 Limited
under the Better Cotton Initiative (BCI) programme. for better production of the crop. The CCRI held a In March 2019, The Ministry of Commerce and
In this connection, the WWF held its first joint consultation session with the WWF to provide Textile, Government of Pakistan has duly notified a - Mr Shahid Soorty, CEO, Soorty Enterprises Pvt. Ltd.
consultation meeting in collaboration with the a platform to all cotton growers.” task force in order to formulate Textile Policies - Mr Mian Ahsan, CEO, US Apparel
Multan Central Cotton Research Institute which 2019-24. - Mr Shahzad Saleem Asghar, Style Textiles
was attended by a large number of growers. While presenting a comparison on cotton - Mr Shahid Nazir Ahmed, CEO/Director, Masood
products, He said that there was a need to The task force constituted by the textile division Textile Mills Limited
Speaking on the occasion, Dr Zahid Mehmood, promote the benefits of cotton among the growers comprises of the following: - Mr Zafar Iqbal Sarwar, CEO ZIS Textiles Pvt. Ltd.
CCRI Director said, “The prime objective of the that would increase its production. - Mr Salman Shah, Former Federal Finance Minister Faisalabad
(Chairman) - Representative of Textile Division

February/March 2019 February/March 2019