Page 29 - TEXtalks January/February 2022

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Global demand for cotton would reach

all-time high with price to highest level

This year, global demand for cotton would reach an for 62% of total exports. A government scheme to
all-time high, thanks to the economic resurgence import cotton for domestic distribution, even without
from the pandemic that has driven cotton prices to any subsidies, to meet the industry's needs would
their highest level in a decade. THIS SPRING, the still lead to gains for the national economy and
US cotton growers plan a 7% increase in cotton exports because of value addition.
plantings. The harvest would be 17.3 million bales
weighing 480 pounds, with typical weather and India's cotton exports for marketing year (MY)
yields. US exports will increase to 15.8 million bales 2021-22 is projected at 5.9 million (480-lb) bales
in the 2022 marketing year. When combined with US (7.6 million 170-kg bales/1.3 million metric tonnes),
mill use, total offtake exceeds expected production, according to the US Foreign Agricultural Service
and ending stocks are projected to fall to 3.1 million (FAS) office in Mumbai, whose estimate is almost
bales. If realized, US stocks represent one of the 100,000 (480-lb) bales higher than the official figure
lowest levels in the last 20 years. World ending of the US department of agriculture (USDA). The
stocks are projected to decline by 3.4 million bales Mumbai FAS office forecasts MY 2021-2022
in the 2022 marketing year to 81.6 million bales, consumption at 26.5 million (480 lb.) bales (34
resulting in a stocks-to-use ratio of 64.8%. million 170-kilogram bales/5.8 million metric tons).
Its mill consumption estimate is 2% higher (500,000
Pakistan's cotton production surged by 32.4% to 480 lb. bales) than the official USDA estimate.
7.43 million bales up to February 15, 2022, instead
of 5.62 million bales produced in the same period Brazil, the world's second-largest cotton exporter, is
last year, the Pakistan Cotton Ginners Association expecting a very optimistic scenario for the 2021/22
(PCGA). However, Pakistan is facing issues with the crop, with prices on the rise as planting is about to
cotton shortage. Cotton is crucial for Pakistan's end. The cotton planted area grew 38% from the
textile sector, which accounts for the lion's share of previous season to 177,800 hectares (439,353
the country's exports. Pakistan's textile companies acres). China is a major supplier of textiles,
are entering into contracts with foreign firms to including cotton, and is responsible for 80% of the
import cotton as domestic stock of the commodity world's cotton production. One of the major markets
for its cotton apparel and cotton textiles is in the US,
will end in February. Pakistan's target was fixed and Xinjiang is responsible for 20% of China's
below 10 million bales for the ongoing fiscal year, cotton production. The US bill banning all products
whereas the overall requirement was more than 15 from the region was signed in December 2021, so it
million. Textile exports are rapidly growing, up 26% will be interesting to see how China leads in this
in the first half of the current fiscal year, and account vulnerability index.

January/February 2022