Which country is the largest exporter of cotton?

Which country is the largest exporter of cotton?

Top textile producing countries in the world 2020

Cotton is the world’s most important non-food agricultural commodity. It is grown mainly for its fiber and seeds and Mexico ranks ninth in world production, participating with 1.4 percentFor the 2019/20 marketing cycle, world cotton production is forecast slightly up. According to the U.S. Department of Agriculture (USDA), in the July 2019 estimate, a 5.4 percent annual increase in production is forecast for the 2019/20 cycle, to stand at 125.8 million bales of 480-pound feather cotton.This would be the second highest production cycle after the peak reported in 2011-2012, which was 127.4 million bales. The main producing countries in 2019-2020 participating with 78.5% of the total are India (23.1%), China (22.1%), the United States (17.5%), Brazil (9.5%) and Pakistan (6.4 percent).According to the USDA, the increase in the 2019/20 cycle is attributed to the larger area expected to be harvested in the United States, this due to favorable moisture conditions in the southwest of that country.

Cotton producing countries in Latin America

Among the main countries that stand out for their higher consumption is China, which is expected to recover by 13.6%, i.e., from consuming 7.19 million tons during 2019/20 it would consume 8.17 million tons in 2020/21. It is worth mentioning that, due to the fall in its production, China has had to resort to its significant available stocks to cover its consumption gap. In general terms, the behavior of the Chinese market would explain the development of world cotton consumption.

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As stocks exceeded six months of annual supply and the main consuming countries were the ones to dispose of the necessary stocks, prices on the international market remained depressed. In August 2019, it even experienced one of the lowest levels in its history.

As can be seen, the accumulation of stocks has been rising dangerously, and if demand does not increase or cotton production falls substantially, its impact could be reflected in prices.

Main cotton exporters

Cotton is grown mainly for fiber production. After ginning, cottonseed is used to produce oil for human consumption and oilcake for animal feed.

The current scheme aims to promote a competitive, sustainable and market-oriented cotton sector, while respecting legal commitments to support “cotton production in regions of the Community where it is important for the agricultural economy”.

Like other farmers, cotton producers are entitled to receive decoupled income support (known as cross-compliance) for respecting high standards of environmental protection, animal welfare and food safety.

In addition, the EU grants a crop-specific payment for cotton, limited to a certain base area per EU country. To qualify for this payment, farmers must grow cotton only on land authorized by the EU country, using authorized seed varieties, and the cotton harvested must meet minimum quality requirements. The purpose of this crop-specific payment is to avoid any risk of production disruption in cotton-producing regions.

Cotton producers in the world

China, on the other hand, does not export its production, but is projected to be the largest importer (18% of the world total). It will be closely followed by Bangladesh (17%) and Vietnam (16%), which have become the world centers of apparel production and depend almost entirely on cotton imports to sustain their textile industry.

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White gold plays an important role in African economic development. For some countries, such as Mali, it constitutes an important part of their GDP, and is often their main export product2.

The African sector has good potential to grow in world trade, despite the physical distance from the major importers – which has a strong impact on this tropical crop due to increased transport and the possible vicissitudes of the weather.

Most transactions between cotton buyers and sellers follow the rules established by the ICA (International Cotton Association).5 In a contract of this type, the parties agree, among other things, on the quantity, quality and weight of the products to be shipped.

Which country is the largest exporter of cotton?
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