Pakistan third largest cotton consumer in world
By Imran Ayub
KARACHI: Pakistan would remain the third largest consumer of cotton worldwide this season overtaking the United States and the European countries and three are firm predictions that the same situation would continue by the next season.
A report recently released by the International Cotton Advisory Committee (ICAC) rated Pakistan the third largest consumer of the commodity after China and India and the three Asian states would continue the trend by the end of 2006.
ââ¬ÅThe ICAC estimates that world cotton production will reach 25 million tonnes in 2005-06, five percent less than the previous season but still the second highest on record,ââ¬Â said the report.
ââ¬ÅDemand is expected to increase by three percent to 24 million tonnes, and as a consequence world trade in cotton is expected to rise to a record of eight million tonnes.ââ¬Â
The ICAC report estimates Pakistanââ¬â¢s cotton consumption to rise to 2.42 million metric tonnes this year against 2.3 million metric tonnes the countryââ¬â¢s textile industry consumed during 2004. The county is likely to consume 2.54 million metric tonnes cotton by 2006, calculates the ICAC report.
The cotton mill use in the country has been on the rise for the past couple of year due to $5 billion BMR (balancing, modernisation and replacement) programme undertaken by the textile industry.
The industry believes the post-quota trading environment under the WTO regime has a lot to offer to the $8 billion export industry and the increasing consumption of cotton bales in the mills is indicative of such a trend.
However, despite rising consumption of cotton in Pakistan, as per the international bodyââ¬â¢s report, China and India are far ahead in textile production.
The ICAC report places China as number one user of cotton with 8.60 million metric tonnes consumption this year, which is expected to increase to 9.03 million metric tonnes by 2006.
Similarly, Indiaââ¬â¢s cotton consumption stands at 3.60 million metric tonnes, which would grow to 3.78 million metric tonnes by the end of 2006.
ââ¬ÅWorld ending stocks are projected to climb to 11 million tonnes at the end of 2005-06, the highest since 1985-86,ââ¬Â said the report.
ââ¬ÅThe average cotton price is expected to rise in 2005-06 because of the increases in consumption and trade.ââ¬Â
The US-based ICAC, which represents 42 cotton producing and consuming countries, however stressed standardised cotton production and trade rules, which could benefit both growers and traders.
ââ¬ÅThe committee encouraged the universal adoption of a common set of trade rules and contract terms that reflect the customs and usage of the international trade in cotton,ââ¬Â said the ICAC.
ââ¬ÅCommon rules will benefit both buyers and sellers by promoting a sound cotton economy through efficiency in trade and equitable resolution of contract disputes.ââ¬Â
It said most cotton was now traded under the rules of the International Cotton Association (ICA) and there was an agreement that the cotton industry was responsible for conducting educational efforts to ensure that all cotton industry participants were aware of the rules governing international trade in cotton.
ââ¬ÅThe committee heard of efforts to encourage the adoption of Integrated Pest Management (IPM) and better or best management practices (BMPs) that enable producers to improve resource use, enhance environmental outcomes, reduce waste, assure market access and strengthen relations with local stakeholders,ââ¬Â said the report.
ââ¬ÅA key element of the development of BMPs is to base recommendations on best science, and governments were encouraged to identify research results appropriate to BMPs in their countries and to encourage their adoption,ââ¬Â said the ICAC report.
By Imran Ayub
KARACHI: Pakistan would remain the third largest consumer of cotton worldwide this season overtaking the United States and the European countries and three are firm predictions that the same situation would continue by the next season.
A report recently released by the International Cotton Advisory Committee (ICAC) rated Pakistan the third largest consumer of the commodity after China and India and the three Asian states would continue the trend by the end of 2006.
ââ¬ÅThe ICAC estimates that world cotton production will reach 25 million tonnes in 2005-06, five percent less than the previous season but still the second highest on record,ââ¬Â said the report.
ââ¬ÅDemand is expected to increase by three percent to 24 million tonnes, and as a consequence world trade in cotton is expected to rise to a record of eight million tonnes.ââ¬Â
The ICAC report estimates Pakistanââ¬â¢s cotton consumption to rise to 2.42 million metric tonnes this year against 2.3 million metric tonnes the countryââ¬â¢s textile industry consumed during 2004. The county is likely to consume 2.54 million metric tonnes cotton by 2006, calculates the ICAC report.
The cotton mill use in the country has been on the rise for the past couple of year due to $5 billion BMR (balancing, modernisation and replacement) programme undertaken by the textile industry.
The industry believes the post-quota trading environment under the WTO regime has a lot to offer to the $8 billion export industry and the increasing consumption of cotton bales in the mills is indicative of such a trend.
However, despite rising consumption of cotton in Pakistan, as per the international bodyââ¬â¢s report, China and India are far ahead in textile production.
The ICAC report places China as number one user of cotton with 8.60 million metric tonnes consumption this year, which is expected to increase to 9.03 million metric tonnes by 2006.
Similarly, Indiaââ¬â¢s cotton consumption stands at 3.60 million metric tonnes, which would grow to 3.78 million metric tonnes by the end of 2006.
ââ¬ÅWorld ending stocks are projected to climb to 11 million tonnes at the end of 2005-06, the highest since 1985-86,ââ¬Â said the report.
ââ¬ÅThe average cotton price is expected to rise in 2005-06 because of the increases in consumption and trade.ââ¬Â
The US-based ICAC, which represents 42 cotton producing and consuming countries, however stressed standardised cotton production and trade rules, which could benefit both growers and traders.
ââ¬ÅThe committee encouraged the universal adoption of a common set of trade rules and contract terms that reflect the customs and usage of the international trade in cotton,ââ¬Â said the ICAC.
ââ¬ÅCommon rules will benefit both buyers and sellers by promoting a sound cotton economy through efficiency in trade and equitable resolution of contract disputes.ââ¬Â
It said most cotton was now traded under the rules of the International Cotton Association (ICA) and there was an agreement that the cotton industry was responsible for conducting educational efforts to ensure that all cotton industry participants were aware of the rules governing international trade in cotton.
ââ¬ÅThe committee heard of efforts to encourage the adoption of Integrated Pest Management (IPM) and better or best management practices (BMPs) that enable producers to improve resource use, enhance environmental outcomes, reduce waste, assure market access and strengthen relations with local stakeholders,ââ¬Â said the report.
ââ¬ÅA key element of the development of BMPs is to base recommendations on best science, and governments were encouraged to identify research results appropriate to BMPs in their countries and to encourage their adoption,ââ¬Â said the ICAC report.
