ICAC ranks Pakistan at 3rd position in world cotton consumption
05 Oct '05
3 min read
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, India's cotton consumption stands at 3.60 million metric tonnes, which would grow to 3.78 million metric tonnes by the end of 2006.
“World ending stocks are projected to climb to 11 million tonnes at the end of 2005-06, the highest since 1985-86,” said the report.
“The average cotton price is expected to rise in 2005-06 because of the increases in consumption and trade.”
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.
“The 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,” said the ICAC.
“Common rules will benefit both buyers and sellers by promoting a sound cotton economy through efficiency in trade and equitable resolution of contract disputes.”
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.
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