Spinning Sector Overview

9 SPINNING | WORLD COTTON DYNAMICS PRODUCTION & YIELD PACRA World Cotton Production (000 MT) • World cotton production stood at 26.8mln MT in FY20, showing a CAGR of ~6.5% since 2016. Country FY16 FY17 FY18 FY19 FY20 India 5,639 5,879 6,314 5,617 6,641 China 4,790 4,953 5,987 6,042 5,933 • India & China remain two of the largest cotton producers in the world, representing ~47% of total output. United 2,806 3,738 4,555 3,999 4,336 States Brazil 1,289 1,528 2,007 2,830 2,874 Pakistan 1,524 1,676 1,785 1,655 1,350 • All major cotton producing countries have shown positive growth in the last 5 years. On the contrary, Pakistan experienced contraction in its cotton output by ~3%pa. Rest of 4,889 5,452 6,341 5,691 5,640 World Total 20,937 23,226 26,989 25,834 26,774 World Annual Cotton Yields (Kg/Ha) . Pakistan's cotton production represents ~5% of total world output. 2000 . Annual cotton yields remained relatively stable since FY 16 around the world. 1500 . Among the major cotton producers, China & Brazil have the highest cotton yield per hectare. 1000 500 • Pakistan's cotton yield clocked in at ~550kg./ha, one of the lowest in the world. 0 FY16 FY17 FY18 FY19 FY20 Brazil China USA India Pakistan Source: Trade Map, USDA

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