Daily Times
China takes the lead, Pakistan comes in second
By Razi Syed
KARACHI: The world cotton production declined due to lower than targeted production in Pakistan and China besides in other major cotton producing countries in the world, according to United Sates Department of Agriculture (USDA) Thursday.
“World production was lowered around 880,000 bales due to around 700,000 bales reduction in China and around 230,000 bales shortfall in Pakistan, a senior member Pakistan Yarn Merchant Association (PYMA), Ghulam Rabbani said.
He said world production declined 880,000 bales to 108.67 million bales while world consumption also reduced by around 1.53 million bales to 111.130 million bales.
He said India was also a contributor to the decline in world production due to a shortfall of 200,000 bales, while in Brazil production witnessed a decline of around 100,000 bales.
He said the textile and spinning sector of the country has to import around 2.8 million bales this season to meet the shortfall and keep the wheel of the industry moving.
The increase in world ending stocks was below the 1-2 million bales increases that were expected.
One of the major reasons of lower than expected production in Pakistan, India and other countries was United States’ sensitive subsidies to its growers.
“Around $550 billion is allocated for subsidies for agriculture mostly from the amount for cotton growers in US.”
The United States was committed to a deal on cotton in the long-running Doha trade talks, but has not yet reached an agreement, he added.
He said major cotton producers were facing hardships due to USA’s stubborn attitude towards not cutting subsidies rather demanding world to end subsidies on agriculture.
“This is an unfair practice and Pakistan is among the cotton producing countries where growers are facing high input costs besides high bank rates,” Rabbani added.
Regarding world and US cotton highlights for March 2014-09, world mill use is estimated at 111.1 million bales, down 1.5 million bales from February, he added.
He said during 2014-09, US mill use is at 3.8 million bales, down 150,000 bales from February and down 860,000 bales from the 2014-08 crop.
Similarly 2014-09 US exports are estimated at 12.00 million bales, up 500,000 bales from February 2014 and China mill use is estimated at 46.5 million bales, down 500,000 bales from February 2014. China imports are estimated at 7.0 million bales, up 500,000 bales from February 2014.
The US 2014-09 cotton production was left unchanged at 13.04 million bales and its consumption was lowered 125,000 bales to 3.75 million bales.
US exports increased to 12.0 million bales up 500,000 bales from the February 2014 projection while US ending stocks were lowered by 400,000 bales to 7.30 million bales.
However the USDA increased world 2014-09 beginning stocks to 62.52 million bales up 170,000 bales. Ending stocks increased 840,000 bales to 62.55 million bales, almost equal to last season.
The March USDA supply and demand report was termed supportive and not as bearish as market expectations, he added.
