India And China Will Soon Have A Cotton War

India And China Will Soon Have A Cotton War

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India is the world's second largest cotton exporter. Due to the declining production of India, in 3 to 4 years it may become an importer, forcing the Indian textile factories to compete for cotton supply with the world's largest cotton importer China.

Although the acreage is expanding, but the Indian cotton yields decreased to about 475 kg / ha, or lower 38% than the global average yield. This is because that they hand-pick cotton in general, while other major cotton producing countries, such as the United States and Australia, they pick cotton by machine.

The planted area is limited is not only because the land is limited, weather fluctuations, price fluctuations and other factors, but also because the government encouraged farmers plant a variety of food, reducing crop acreage such as cotton, designed to curb the sharp food inflation. In the next 3 to 4 years, India's cotton glut will disappear. Textile mills can import high-priced cotton or choose man-made fibers.

Seeing from the sales volume, India is the largest textile manufacturing country. Until the September of 2012, India's cotton production will reach a record high of about 6 million tons, or 35 million bags, 170 kg per bag. Then the production will begin to decline.

The global price may prevent Indian farmers from increasing crop acreage. The supply of cotton from Australia, Brazil and African countries will increase. This will make huge Asian neighbors, India and China compete. China is highly dependent on imports of cotton from the United States. The United States is the world's largest cotton producing country.

The consumption of the two Asian countries accounted for 60% of the global cotton production. Last year, cotton is the best performing products. The performance lasted to the first quarter of 2011, having attracted a lot of speculative interest. It reached a peak in the third quarter of last year although the supply of competition then began to cool.

The Indian government figures show that China is the world's largest textile exporter. The last year's global market share was 28.3%, 6.6 times of India's share of 4.3%. India, China and other Asian countries such as Pakistan, Bangladesh and Vietnam show bayonet charge relationship in the textile and apparel exports to European and U.S. markets. If India became a net importer of cotton, then India will have to compete with Chinese enterprises for the cotton supply. Analysts of the industry say that the cotton war will begin in the next few years.


About the Author:
I am Amanda Xia from textiles-leather.com, and my work is to promote a free online trade platform. http://www.textiles-leather.com/ contain a great deal of information about cotton balls and pads , floral cotton dress , chiffon fabric ,and more.



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