Global cotton prices hit a 15-year high: Thailand's textile industry is hit hard

The Taihua Farmers Research Center believes that the world cotton price that has risen to the highest level in the past 15 years will have a major impact on Thailand’s entire textile and apparel industry’s upstream industries (cotton as raw materials) and downstream industries (ie textiles, garments and clothing). Imports of cotton account for 90% of domestic consumption in Thailand. The main reason for the increase in cotton prices is that the world’s cotton production has been reduced due to the reduction of planting area and natural disasters, while the world’s cotton demand has increased, as textile and garment production countries, especially China, have increased production capacity, and cotton’s exporting country, India, has suspended cotton. Exports have led to an increase in world cotton prices.

These factors have enabled countries to take corresponding measures such as expanding cotton production, especially the United States, India, China and Pakistan, which are the major cotton producing countries. In addition, India may resume the export of cotton to other countries by the end of this year. If so, the price of cotton in the world will be reduced, which will benefit the Thai textile and clothing industry. However, Thai operators must closely track and be prepared to respond to various conditions, because such problems may occur again, such as closely tracking the world's cotton production and consumption. In addition, in order to enhance the competitive potential of Thailand's textile and garment industry in the future, all relevant departments, including government departments and private sectors, must pay attention to the research and development of upstream and downstream industries.