What is the impact of lower Chinese imports on the global cotton trade?
China is the worlds largest cotton producer, consumer and importer, and so changes in Chinese cotton policies have significant impacts on the world cotton market. Imports by China are falling from 2.5 million tons to less than 1.5 million tons in 2008/09. However, other importing countries such as Thailand, Indonesia, Turkey, Pakistan and others are also reducing purchases. The combined effect of reduced demand for cotton is weaker prices, despite the dramatic decline in production this season. What are the major challenges facing the global cotton industries? Give your views on how to face these challenges? The major challenges facing the world cotton industry include competition with polyester, distortions to production and trade caused by subsidies and the need to improve production practices to improve the social, environmental and economic performance of cotton. Cotton has been competing with polyester since the invention of chemical-based fibers last century, and competition is i
