With a worldwide glut holding down cotton prices, the National Cotton Council, a U.S. trade group, called for an examination of domestic supports offered to growers in China, India and other developing countries. Gary Adams, the Cotton Council’s chief executive, said India, China and Pakistan are years behind in reporting the scope and type of subsidies offered to their growers.
“An honest critique of the global cotton market must include cotton policies in the developing world as well as subsidies provided to synthetic fibers,” said Adams. Apparel manufacturers switch among natural and man-made fibers depending on their price, appearance and availability. Polyester prices are below 50 cents per pound in China, roughly 10 cents lower than the forecast of the U.S. season-average price of cotton.
“With competition from synthetic fibers limiting growth in cotton demand, the financial condition of cotton producers faces an uphill battle,” said Adams. The Cotton Council said topics for review should include China’s support prices for cotton and India’s fertilizer subsidies. India has displaced China as the No. 1 cotton grower in the world.