Uso de cookies Utilizamos cookies propias y de terceros para mejorar nuestros servicios y mostrarle publicidad relacionada con sus preferencias mediante el análisis de sus hábitos de navegación. Si continúa navegando, consideramos que acepta su uso. Puede obtener más información sobre nuestra: Política de cookies

The global fashion business journal

25 Apr 201917:47

China overtakes India’s lead in the global production of cotton

The last forecasts of the International Cotton Advisory Committee (Icac) point out that at the end of the 2018-2019 campaign, China will be again the world’s largest producer of this raw material.

08 Feb 2019 — 10:01
Silvia Riera
Share
Save

China overtakes India’s lead in the global production of cotton

 

 

China overtakes India’s lead in cotton production. The latest forecasts of the International Cotton Advisory Committee (ICAC) indicate that China will increase by 1% the production of that raw material in the 2018-2019 campaign. India, by contrast, will reduce it by 7% due to the lack of rain.


If the forecasts are right, India would lose the leadership it has hept from the last two years, since the Chinese Government changed its policy of incentives to cotton crops. It is estimated that China will close the 2018-2019 campaign with 5.94 million tonnes.

The demand for this raw material will fall 0.8% during the 2018-2019 campaign, to 26.72 million tonnes. That descent contrasts with the escalating consumption from the past seasons.

 

In 2017-2018, the demand grew 9% compared to the previous year. The present campaign is characterized by a rise in prices, which stand at 89 dollar cents per pound; a fall of 0.19% in production, the first in three seasons, and a new drop in stocks, reaching lows equivalent to the ones in 2011-2012.

 

 

 

 

In case of closing the campaign at 89 cents per pound, cotton will have risen its price by 1.13% compared to the previous year. In this way, cotton will continue with the escalation that began in the 2017-2018 season, when its prices rose by 6%, from 83 cents to 88 cents.

 

The increase in prices is directly related to the decrease in production and the increase in demand, which will cause a reduction in global stocks during 2019. In fact, cotton reserves will decrease by 6.6% in the 2018-2019 season, to 17.6 million tonnes.

 

This is the lowest figure since the financial year 2011-2012, when crops in the United States and China were affected by climatic factors, and the price of cotton registered historic peaks.

According to Icac, the consumption of cotton at the present time will not be affected by the trade war between the United States and China, but could have an impact on textile trade if it slows down the economic development. On the other hand, the increase of production in countries such as China, Brazil, regions of West Africa, Turkey and Uzbekistan will not compensate the fall of the United States, India, Australia and Pakistan.

Advertising
Comment
Share
Participation rules

info@themds.com

 

Validation policy for comments: 

 
MDS does not perform prior verification for the publication of comments. However, to prevent anonymous comments from affecting the rights of third parties without the ability to reply, all comments require a valid email address, which won’t be visible or shared.
 
Enter your name and email address to be able to comment on this news: once you click on the link you will find within your verification email, your comment will be published.

0 comments — Be the first to comment
...