Higher cotton prices in 2003 have boosted world production to 24.4 million tons in 2004-05, approximately 3 million tons above the 2001-02 record, exceeding consumption and leading to an increase in world ending stocks. This was stated by the visiting statistician of International Cotton Advisory Committee Gerald Ester, while delivering a presentation at Pakistan Central Cotton Committee (PCCC) here on Tuesday.
Ester highlighted the global cotton situation and the possible implication of the WTO post-quota regime with particular reference to Pakistan.
He said that China, India and Pakistan, are expected to be the main beneficiaries of the quotas phase out.
He said that the average Cotlook A Index was expected to fall to 50 cents per pond this season on higher production and added that records or near-records are expected in the top five producing countries, China, USA, India, Pakistan and Brazil.
"Improved world economic performance and lower prices are stimulating cotton consumption, which is expected to grow by 5 percent to reach a record of 22.4 million tons in 2004/05," Ester observed.
He noted that for the fifth consecutive season, China would capture most of the increase in world cotton consumption.
Ester said that the world cotton use would benefit from the elimination of the remaining quotas on textile and apparel trade among WTO members on January 1, 2005.
Ester will make another presentation tomorrow (November 24) at the Central Cotton Research Institute, Multan.
Vice-president PCCC Ibad Badar Siddiqui said that a sizeable cotton crop was expected due mainly to 7 percent increase in cotton area sown, favourable weather condition and comparatively much lower insect pests infestation.