EurasiaNet Business & Economics - Uzbekistan: Cotton Sector Could Be Hit Hard in 2009

BUSINESS & ECONOMICS

UZBEKISTAN: COTTON SECTOR COULD BE HIT HARD IN 2009
2/03/09

Uzbekistan’s cotton sector could take a significant hit in 2009 due to rapidly falling global demand, the International Cotton Advisory Council (ICAC) has cautioned.

Overall, the global trade of cotton is expected to contract by 21 percent. Uzbekistan, the world’s third largest producer, will likely see a 40 percent shortfall in exports compared to last year, the ICAC said in a news release February 2.

The ICAC said falling global demand, especially in China, the world’s number one importer of cotton, is exerting downward pressure on output. Chinese manufacturers are expected to buy 41 percent less cotton in 2009 compared to previous years.

In addition, the ICAC forecasts that cotton prices are set to fall by 16 percent.

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