COTTON REPORT:

Direct Assistance Trending Down

International Cotton Advisory Committee

7th Dedicated Discussion

of the Relevant Trade-

related Developments On

Cotton

Geneva

24 July 2017

Season-Average A Index

US cents/lb

(source: Cotton Outlook Ltd.)

0

20

40

60

80

100

120

140

160

180

66/67 76/77 86/87 96/97 06/07 16/17

72

WORLD PRODUCTION (million tons)

12

16

20

24

28

80/81 90/91 00/01 10/11

WORLD PRODUCTION (million tons)

12

16

20

24

28

80/81 90/91 00/01 10/11

WORLD ENDING STOCKS million tons

0.00

0.20

0.40

0.60

0.80

1.00

0

5

10

15

20

06/07 09/10 12/13 15/16

World less China China SU Ratio

India 25%

China 21%

US 17%

Pakistan 8%

Brazil 6%

Fr. Africa 5%

Australia 4%

Uzbek. 3%

Turkey 3%

ROW 8%

2017/18

COTTON PRODUCTION BY COUNTRY

24.6 million tons

COTTON PRODUCTION

million tons

0 1 2 3 4 5 6 7

India

China

USA

Pakistan

Brazil

Fr. Africa

Australia

Uzbekistan

Turkey

16/17

17/18

USA 37%

CFA Africa 14%

India 12%

Australia 10%

Brazil 8%

Uzbekistan 5%

ROW 14%

2017/18*

COTTON EXPORTS BY ORIGIN

7.8 million tons

*Forecast

WORLD COTTON EXPORTS

million tons

0 1000 2000 3000

USA

Fr. Africa

India

Australia

Brazil

Uzbekistan

16/17

17/18

TOP 5 COTTON IMPORTERS million tons

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Bangladesh Vietnam China Turkey Indonesia

13/14 14/15 15/16 16/17 17/18

BANGLADESH IMPORTS BY ORIGIN 2015/16

India 27%

Pakistan 4%

USA 14%

Central Asia 36%

ROW 19%

VIETNAM IMPORTS BY ORIGIN 2015/16

USA 42%

Brazil 14%

India 11%

Ausralia 8%

Cote d'Ivoire 6%

Pakistan 9%

RoW 10%

CHINA IMPORTS BY ORIGIN

Australia 28%

USA 20% Uzbek

14%

India 13%

Brazil 12%

Africa 11%

Row 2%

TURKEY IMPORTS BY ORIGIN 2015/16

USA 36%

Central Asia 21%

Brazil 14%

Greece 11%

Africa 11%

ROW 7%

INDONESIA IMPORTS BY ORIGIN 2015/16

Brazil 26%

Africa 24% USA

23%

India 9%

Australia 9%

ROW 9%

DIRECT ASSISTANCE TO COTTON:

World

0

2

4

6

8

10

12

97/98 00/01 03/04 06/07 09/10 12/13 15/16

US$ billion

DIRECT ASSISTANCE TO COTTON:

Less Recession-Related Support

0

2

4

6

8

10

12

97/98 00/01 03/04 06/07 09/10 12/13 15/16

US$ billion

DIRECT ASSISTANCE TO COTTON

• Direct support to production

• Border protection

• Crop insurance subsidies

• Minimum support price mechanisms

• Input subsidies

• Transportation subsidies

WORLD PRODUCTION UNDER

DIRECT ASSISTANCE

0

10

20

30

40

97/98 00/01 03/04 06/07 09/10 12/13 15/16

Without Assistance With Assistance

70%

million tons