A.Rafay
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KARACHI: Pakistan and United States will witness an increase in cotton production during fiscal year 2012-13, cotton experts said on Friday.
Pakistan would likely produce more than 15.5 million bales, which is up by 3 percent as compared to the previous season and cotton output of US would stand around 17.2 million bales, which is up by 10 percent from the previous year.
Only Pakistan and US are among the leading cotton producing nations, witnessing increase while other leading cotton producing countries are witnessing decline in production in fiscal year 2012-13.
According to US Department of Agriculture, the world 2012-13 cotton production is forecast to decline by 8.0 percent from the previous year to 114 million bales.
Lint production in China and India would stand at 31 million bales and 24.5 million bales, a reduction of 7.5 percent and 11 percent, respectively.
This will be Chinas lowest cotton area in a decade.
Australia and Brazil are expected to produce 4.3 million bales and 6.1 million bales in 2012-13, down 18 percent and 30 percent, respectively from the preceding year.
The expected output decline is attributed to relatively weak global cotton prices and rising production costs, encouraging major growers to shift area to more profitable alternatives.
According to International Cotton Advisory Committee (ICAC), it is also leading to rising stocks and global cotton stocks that could expand by 11 percent to 14.6 million tonnes in 2012-13.
Paksiatn will witness production of more than 15.5 million bales during fiscal year 2012-13 crop season, which is up by 12 percent as comapred to the same period last season and in the United States, fiscal year 2012-13 production is forecast to rise 9.0 percent from the previous year.
The country received around 5.22 million cotton bales by mid-October 2012, during half way crop season, said Pakistan Yarn Merchants Association senior member Ghulam Rabbani.
The ginning units in Punjab produced more than 3 million bales during this period while Sindhs production stood at around 2.2 million bales, he added.
During this period textile sector bought around 4.20 million bales, private sector exporters exported more than 100,000 bales and total stocks were at 605,600 bales.
The global cotton mill consumption was also projected to increase by 4.5 percent to 24.8 million tonnes in fiscal year 2012-13.
The Cotton Crop Assessment Committee (CCAC) had set the target at 14.50 million bales for the fiscal year 2012-13 crop season.
Better yield is attributed to the latest well-researched BT cottonseed, proper crop-related information to growers for usage of fertilizer and appropriate water availability in major crop-growing areas in Punjab and Sindh.
World 2012-13 cotton consumption is forecast to rise 3.0 percent from the previous year to nearly 110.0 million bales, as a result of lower cotton prices relative to polyester and a slight improvement in global economic activity.
The International Monetary Funds (IMF) most recent World Economic Outlook Report has the global economy growing at 3.5 percent in 2012 and 4.1 percent in 2013.
At the same time, current and projected lower cotton prices are likely to improve cottons share of global fibre demand. In Pakistan, fiscal year 2012-13s cotton consumption is forecast at 12.5 million bales, up 12 percent from the previous year.
India is forecast to consume 21.0 million bales in fiscal year 2012-13, up 8.0 percent from a year ago. If realised, this will be its second highest mill use on record.
In the United States, mill use is forecast at 3.5 million bales, an increase of 3.0 percent from a year ago.
Brazils mill use is forecast at nearly 4.3 million bales, up 6.0 percent from a year ago.
Since 40 percent of the worlds cotton consumption occurs in China, the country attempted to follow policy in fiscal year 2010-11, but was forced to abandon it by importing early in the year due to inadequate levels of reserves.
With declining global cotton prices in anticipation of another bumper crop, polyester chain has come into further pressure and prices of Pure Terephthalic Acid, raw material of polyester chain declined to $880 per tonne, lowest since September 2010 while primary margins fell to $70 per tonne, even below breakeven level.
During the crop season 2011-12, the country hit a record high production, which stood at 15 million bales, he added.
US Department of Agricultures forecast :
Country Production Increase
Pakistan 15.5 million bales 3%
United States 17.2 million bales 10%
Daily Times - Leading News Resource of Pakistan
Pakistan would likely produce more than 15.5 million bales, which is up by 3 percent as compared to the previous season and cotton output of US would stand around 17.2 million bales, which is up by 10 percent from the previous year.
Only Pakistan and US are among the leading cotton producing nations, witnessing increase while other leading cotton producing countries are witnessing decline in production in fiscal year 2012-13.
According to US Department of Agriculture, the world 2012-13 cotton production is forecast to decline by 8.0 percent from the previous year to 114 million bales.
Lint production in China and India would stand at 31 million bales and 24.5 million bales, a reduction of 7.5 percent and 11 percent, respectively.
This will be Chinas lowest cotton area in a decade.
Australia and Brazil are expected to produce 4.3 million bales and 6.1 million bales in 2012-13, down 18 percent and 30 percent, respectively from the preceding year.
The expected output decline is attributed to relatively weak global cotton prices and rising production costs, encouraging major growers to shift area to more profitable alternatives.
According to International Cotton Advisory Committee (ICAC), it is also leading to rising stocks and global cotton stocks that could expand by 11 percent to 14.6 million tonnes in 2012-13.
Paksiatn will witness production of more than 15.5 million bales during fiscal year 2012-13 crop season, which is up by 12 percent as comapred to the same period last season and in the United States, fiscal year 2012-13 production is forecast to rise 9.0 percent from the previous year.
The country received around 5.22 million cotton bales by mid-October 2012, during half way crop season, said Pakistan Yarn Merchants Association senior member Ghulam Rabbani.
The ginning units in Punjab produced more than 3 million bales during this period while Sindhs production stood at around 2.2 million bales, he added.
During this period textile sector bought around 4.20 million bales, private sector exporters exported more than 100,000 bales and total stocks were at 605,600 bales.
The global cotton mill consumption was also projected to increase by 4.5 percent to 24.8 million tonnes in fiscal year 2012-13.
The Cotton Crop Assessment Committee (CCAC) had set the target at 14.50 million bales for the fiscal year 2012-13 crop season.
Better yield is attributed to the latest well-researched BT cottonseed, proper crop-related information to growers for usage of fertilizer and appropriate water availability in major crop-growing areas in Punjab and Sindh.
World 2012-13 cotton consumption is forecast to rise 3.0 percent from the previous year to nearly 110.0 million bales, as a result of lower cotton prices relative to polyester and a slight improvement in global economic activity.
The International Monetary Funds (IMF) most recent World Economic Outlook Report has the global economy growing at 3.5 percent in 2012 and 4.1 percent in 2013.
At the same time, current and projected lower cotton prices are likely to improve cottons share of global fibre demand. In Pakistan, fiscal year 2012-13s cotton consumption is forecast at 12.5 million bales, up 12 percent from the previous year.
India is forecast to consume 21.0 million bales in fiscal year 2012-13, up 8.0 percent from a year ago. If realised, this will be its second highest mill use on record.
In the United States, mill use is forecast at 3.5 million bales, an increase of 3.0 percent from a year ago.
Brazils mill use is forecast at nearly 4.3 million bales, up 6.0 percent from a year ago.
Since 40 percent of the worlds cotton consumption occurs in China, the country attempted to follow policy in fiscal year 2010-11, but was forced to abandon it by importing early in the year due to inadequate levels of reserves.
With declining global cotton prices in anticipation of another bumper crop, polyester chain has come into further pressure and prices of Pure Terephthalic Acid, raw material of polyester chain declined to $880 per tonne, lowest since September 2010 while primary margins fell to $70 per tonne, even below breakeven level.
During the crop season 2011-12, the country hit a record high production, which stood at 15 million bales, he added.
US Department of Agricultures forecast :
Country Production Increase
Pakistan 15.5 million bales 3%
United States 17.2 million bales 10%
Daily Times - Leading News Resource of Pakistan
