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Cotton ending stocks to be drawn

down due to higher consumption

and lower production

The drawing stocks will be down by the end of this season as outpace production is expected. The 2020/21
cotton consumption forecast has been revised upward this month from 24.2 million tonnes to 24.5 million
tonnes, and while the projected 7% year-over-year increase isn’t nearly enough to offset the losses caused by
the pandemic. Stock levels are expected to drop to 21.1 million tonnes by the end of 2020/21, which would
represent a 1% decrease from the previous season.

The Secretariat is projecting an increase in global trade. Both China and Pakistan are forecast to increase
imports, the former benefitting from the price gap between domestic and foreign cotton and the latter due to
a decrease in domestic production. This month, the Secretariat’s price projection for the year-end 2020/21
average of the A Index is 75.7 cents per pound.
Greenwashing Label on websites: In about 42% of

cases, the claims were exaggerated or deceptive

According to the European Commission and • In 37% of cases, the claim included vague and
National Consumer Authorities, about 42% of the general statements such as "conscious",
claims were exaggerated, false or deceptive and
"eco-friendly", "sustainable," which aimed to convey
The increasing trust of Global Retailers in could qualify as unfair commercial practices under the unsubstantiated impression to consumers that a
EU rules. The data was shared as the results of their
product had no negative impact on the environment.
Better Cotton boosted its demand in 2020 annual 'sweep' of websites. • Moreover, in 59% of cases, the trader had not provided
easily accessible evidence to support its claim.
Greenwashing has increased as consumers
increasingly seek to buy environmentally sound Justice Commissioner Didier Reynders said, "More
According to the Better Cotton Initiative (BCI), 192 part of a retailer’s portfolio of more sustainable products. The point where websites take advantage and more people want to live a green life and I
retailers and brand members sourced 1.7 million cotton, including organic, Fairtrade, and recycled of consumers looking to purchase environmentally applaud companies that strive to produce
tonnes of Better Cotton in 2020. The volume is cotton. sound products. This year, for the first time ever, the eco-friendly products or services. However, there are
around 13% more than the cotton sourced during sweep focused on "greenwashing", the practice by also unscrupulous traders out there, who pull the
2019. The BCI engages and brings together the Paula Lum Young-Bautil, Deputy Director, BCI, said, which companies claim they are doing more for the wool over consumers' eyes with vague, false or
entire cotton sector, from farmers, ginners, and “BCI Members remained focussed on their environment than they actually are. The "sweep" exaggerated claims."
spinners to civil society organizations and significant commitments to sustainability through this analyzed green online claims from various business
global retailers and brands, to establish more challenging year. From civil society members sectors such as garments, cosmetics, and A potential amount to an unfair commercial practice
sustainable cotton as the norm. supporting farmers on protective measures for household equipment. under the Unfair Commercial Practices Directive
Covid-19 to commercial members continuing to (UCPD) may be charged. National authorities will
Among BCI’s 2,000 members, its Retailer and Brand source Better Cotton and investing in cotton farming The Commission and consumer authorities now contact the companies concerned to point out
Members influence the market and drive demand by communities, BCI Members were more active and examined 344 seemingly dubious claims in more the issues detected and to ensure that these are
sourcing more sustainable cotton as their raw engaged than ever. Now we look ahead to 2021 and detail and found that: rectified where necessary. The sweep findings will
material of choice. Better cotton: the cotton grown support even more ambitious sourcing plans from • In more than half of the cases, the trader did not also feed into the impact assessment to be
by licensed BCI Farmers often forms a significant our growing membership.” provide sufficient information for consumers to prepared for a new legislative proposal to empower
judge the claim's accuracy. consumers for the green transition.

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