The total lint consumption by RSA and Swaziland spinning mills for the 2005/06 marketing year of 48 186 tons was 19 percent down from the previous year due to the continued imports of low-priced textiles and apparel, mainly from China.
And also because of the relative stronger Rand against the US dollar, all of which impact very negatively on exports under the African Growth and Opportunity Act (AGOA) agreement as well as on other exports.
For the 2006/07 marketing year, a further decline of about 5 percent in local cotton lint consumption is forecasted at this stage. Because of the small crop it is expected that about 65 percent of local spinners' cotton requirements will have to be imported during the current marketing year.
Due to the small crop in relation to local demand, about 57 percent of local spinners' cotton requirements had to be imported during the 2005/06 marketing season.
The imports which amounted to 27 410 tons, originated mainly from Zambia and Malawi, the two main suppliers accounting for 90 percent of all cotton lint imports (Zambia is the main supplier and accounts for 66 percent of total imports).
For the first time in 5 years a limited quantity of cotton lint (6 599 tons) was exported during the 2005/06 marketing year.
During 2005/06, 99 percent of all cotton lint imports originated from countries within the Southern African Development Community (SADC) as there is no import duty applicable on cotton lint imports from these countries in terms of a free trade agreement.
International Cotton Advisory Committee
marketing@alchempro.com
