Four Asian Countries Collectively Blockade Textile Production In Crisis

According to the US Department of agriculture forecast in March, cotton consumption in India, Pakistan, Turkey and Bangladesh totaled 10 million 885 thousand tons this year, accounting for 42.3% of the world's total, and imports of 11 million 500 thousand packs, accounting for 41.5% of the world's total. The four countries' measures to seal up the country will have serious consequences and their negative effects will last 1-2 months.

With the escalation of the global epidemic, European and American brands and retailers have begun to suspend or cancel orders and shipments. Manufacturing bases such as India, Pakistan, Turkey and Bangladesh are in deep trouble. At present, all four countries have entered the blockade, and textile production has been temporarily suspended.

Turkey is a strong growth point for cotton consumption outside China. Textile and clothing exports in 2020 are expected to reach US $29 billion. Cotton consumption is expected to be 1 million 589 thousand tons this year, and is the fourth largest consumer in the world. The import volume of cotton from August 2019 to January 2020 was 468 thousand and 200 tons, more than double that of the same period of the previous year, and the import volume is expected to be 936 thousand tons this year. At present, the cotton trade in the country has basically stopped. There are still a large number of signed cotton (about 150 thousand tons across the road) and Brazil cotton (4-12 months delivery) without shipment.

Pakistan has embark on a three week blockade, and all textile production and consumption have ceased. Without considering the epidemic situation, cotton consumption in Pakistan this year is 2 million 350 thousand tons. Pakistan is an important source of supply for fast fashion in the US and the world. Before the outbreak, factories were loaded at full capacity. Now many large brands and retailers have cancelled orders, resulting in the loss of wages for some small factories.

Bangladesh is the largest buyer of West African cotton and India cotton. Clothing exports in 2020 are expected to reach US $33 billion. But with the outbreak of the epidemic, as of March 25th, 2 billion 580 million US dollars of export orders were cancelled, more than half of them were in Europe. The cancellation of orders will continue to increase in the short term, and the factory's failure to pay wages will lead to unemployment.

India has been sealed up for three weeks since March 25th. Its huge labor force will not depend on it. Cotton farmers' field operations can not be carried out. Cotton processing will stop and cotton exports will be cancelled or postponed. This year's cotton planting may be postponed. Domestic consumption is expected to be reduced by at least 2 million 500 thousand bales.