Page 19 - TEXtalks September/October 2021

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Global cotton prices and

consumption on the rise

Cotton is popular because it is easy to care for and thousand bales in 2020. China’s domestic
comfortable year-round. Global cotton consumption consumption of cotton stands at 41,000 thousand
is increasing day by day. According to the latest bales in 2021, the highest consumption globally,
update of the United States Department of Agricul- followed by India. Pakistan’s domestic cotton
ture (USDA), the global cotton production in August consumption was 10,600 thousand bales in August
2021 was around 118.84 Million bales (480 lb/bale). 2021, the same as the previous year. However, the
The worldwide cotton production has increased by projections to domestic cotton consumption in
+6.40% than in August 2020. Concerning cotton Pakistan are to reach 11,000 thousand bales in
production, India increased its cotton production to September 2021.
29,000 thousand bales in August 2021 from 28,300
thousand bales during the previous year. China The difference between the local cotton production
stood at the second position even though the cotton and consumption in Pakistan stands at 5,600
production reduced to 26,750 thousand bales thousand bales. Therefore, Pakistan has to import
compared to 29,500 thousand bales last year. around 1,285 thousand metric tons of cotton to fulfill
the domestic demand. The export of cotton from
Last year, Pakistan's textile sector faced cotton Pakistan is out of the question. The government
shortage issues as its cotton production decreased should facilitate the local industry by taking appro-
to 4,500 thousand bales in August 2020, while the priate measures to increase cotton production, and
cotton production in August 2019 was around 6,200 raw cotton or yarns exports should be discouraged.
thousand bales. The closure of international trade In August 2021, in a bid to stabilize prices and
due to the COVID-19 pandemic also created chaos incentivize producers, the Ministry of Food Security
in the country. However, this year Pakistan has taken and Research announced a new policy to intervene
some positive measures to increase cotton produc- if cotton prices fall below Rs. 5,000/40kg ($781/
tion. The report of USDA highlights that Pakistan has Ton). On September 12, 2021, cotton prices fell
increased its cotton production from 4,500 thousand Rs1,200/maund as international shipments arrived in
bales (2020) to 5,000 thousand bales this year. the country, which provided a better supply and
eased the demands. According to the Pakistan
The domestic consumption of cotton has increased Bureau of Statistics (PBS), the cotton import was
globally. USA's domestic consumption of cotton has 41,974 MT in August 2020, which increased to
reached 2,500 thousand bales in 2021 than 2,350 53,238 MT in August 2021.

September/October 2021