B'desh among other countries to enjoy cotton bonanza in FY `14

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Nizam Ahmed Consumption of cotton in Bangladesh, the second largest exporter of ready-made garments (RMG) in the world, is likely to increase by 2.0 per cent to 3.8 million bales in the fiscal year (FY) 2013-14 against the preceding FY, said a forecast of the United States Department of Agriculture (USDA). Vietnam, an immediate competitor of Bangladesh in the RMG trade in the world, is also likely to have a surge in cotton consumption by 11 per cent to 2.5 million bales in the said FY. Similarly, use of cotton across the world will increase by 2.0 per cent to 110.2 million bales in the FY 2013-14 as cotton consumption in India and Pakistan is poised to rise by 2.0 per cent and 4.0 per cent to 23.3 million bales and 12 million bales respectively, says the forecast. During the fiscal year, global (year) ending stocks are forecast to reach a record 92.5 million bales, up 9.0 per cent from the previous year (2012-13) as world production outpaces world consumption for the third consecutive year. China, the largest RMG exporter in the world, is expected to account for 64 per cent (58.9 million bales) of projected global stocks during the year of forecast due to an ongoing policy of government cotton procurement for state reserves. The year-ending stocks in Australia are forecast to rise by 19 per cent to 2.7 million tonnes, which will constitute 3.0 per cent of the global ending stocks in 2013-14, when Brazil will have a forecast stock of 5.9 million bales, up 8.0 per cent from the preceding FY. However, according to the USDA forecast, the year-ending stocks of India and Uzbekistan is likely to decline 6.0 per cent and 15 per cent to 7.2 million bales and 1.2 million bales respectively. The forecast said the year-ending stocks in the USA are likely to fall by 28 per cent to 2.6 million bales in 2013-14 from the previous FY. The year-ending stocks in Australia in 2013-14 are forecast at 2.7 million bales, up 19 per cent from the previous year and stocks will constitute 3.0 per cent of global ending stocks. The year-ending stocks in Brazil are expected to rise by 8.0 per cent to 5.9 million bales from the previous year, said the US forecast. According to Yahoo statistics, a bale of cotton weighs approximately 500 pounds or 226.8 kilogrammes in the US. Consumption of cotton is also likely to increase further in the coming years as Bangladesh has been mulling to establish a cotton spinning zone in the country to feed the millers at a short notice. More than 4,500 garments factories in the country are the main users of cotton, and those often face shortages and price instability due to the absence of a ready stock in the country, industry sources said. Bangladesh is expecting to fetch more than $20 billion in the concluding FY 2012-13 from RMG exports against little over $19 billion earned in the previous FY (2011-12), according to data available at the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).