Page 12 - TEXtalks. October- November 2023

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Brazil to exceed US cotton

output for the first time

In its October report, the United States Department of Agriculture (USDA) said that Brazil’s cotton
production in 2023-24 will exceed that of the US for the first time. USDA also added that Brazil is close to
surpassing US cotton exports for the first time since the 19th century. USDA also made major changes to
the way the agency calculates various cotton parameters in Brazil.

The agency did a broad review of Brazil’s cotton production numbers dating back to 2000, leading to major
changes in its ending stock numbers for both Brazil and the world market. USDA moved Brazil’s cotton
production figures from one crop year to the next in its harvest calendars to better align with the country’s
harvest and export schedule.

“Last month’s 2022-23 estimates of 14.4 million bales is now the basis for the 2023-24 production estimate.
Therefore, each year’s output estimate was transferred to the next business year,” USDA stated. Brazil’s new
production estimate for 2023-24 was adjusted to 14.6 million bales, which also reflects updates from the
Brazilian National Supply Company (CONAB). Brazilian 2023-24 opening stocks as of August 1, 2023, are
now estimated at 5.8 million bales, compared to last month’s estimate of 16.4 million bales.

Polyester producers ask government to

continue anti-dumping duty on imports

Textile millers producing polyester filament yarn have demanded that the government continue charging
anti-dumping duty (ADD) on the import of polyester filament yarn (PFY) for at least five years to discourage
the dumping of yarn in the country, mainly from China.PFY is a raw material for knitting and weaving to make
polyester fabrics like clothes, curtains, bed sheets, ropes, etc.

They pointed out that current ADD levels in Pakistan were low compared to what was imposed by other
countries against China. However, even at these low levels (in the range of 2.78 percent to 6.82 percent or
on an average of 4.8 percent), the continuation of ADD and its effective collection in Pakistan for the next five
years is essential.” The outgoing year was a challenging period for the manufacturers of manmade yarn
being characterised by a severe politico-economic crisis.

The dumping was mainly due to the Chinese mega expansions over the last two years. It was said that
producers in China wanted to start their new capacities and companies to operate above 90 percent to give
a good picture to banks and local governments to allow them to fully draw their loans for completing their
expansions, the local company said in the report.

October/November 2023