Find out why China has reconsidered where it imports almost half its cotton from.
February 13, 2013
Due to the energy crisis in Pakistan, China has chosen India as its main source for imported cotton yarn. Pakistani industrialists have failed to meet production deadlines against export orders to China in the past due to the crisis and delivery of the fiber has suffered delays.
According to Ahsanul Haq, the head of the Cotton Ginner’s Association, 44% of the total amount of yarn imported by China last year was ordered from Pakistan. China’s decision to reconsider their cotton yarn source has pushed India’s yarn exports to an unprecedented level.
According to recent reports, India’s cotton stocks are up, so hopefully the supply can meet the cotton giant’s new demand. For 2012/13 season (October-September) India is predicted to reach 35.375 million bales (375 lbs. each). The total supply during this season will be 41.9 million bales and the domestic consumption is estimated to be 27.1 million bales.
According to Dhiren Sheth, president of Cotton Association of India, “The cotton crop looks promising despite a reduction in cotton acreage.” For the first time in several years, two states - Gujarat and Maharashtra - are expected to be the leading cotton producers at 8 million bales. The third-highest-producing state in the nation is set to be Andhra Pradesh with an estimated production of 7.3 million bales.
The opening stock for this season (2012-13) will be 5.32 million bales with imports of 1.2 million bales, bringing the total supply to 41.896 million bales. Compared to last year, though, total production will still be reduced by 1.95 million bales. Source: The International News, Seshadri Ramkumar (Source: Cotton 24/7)