Khmer price will seriously affect Thai textile and apparel industry chain

Taihua Farmers Research Center believes that the world cotton price that has reached the highest level in the past 15 years will have a significant impact on Thailand's entire textile and apparel industry's upstream industries (cotton as raw material) and downstream industries (ie, textiles, clothing, and apparel). Imports of cotton account for 90% of domestic consumption in Thailand. The main reason for the increase in cotton prices is that the worldâ€™s cotton production has been reduced due to the reduction of planting area and natural disasters, while the worldâ€™s cotton demand has increased. The major textile and apparel producing countries, especially China, have expanded production capacity, and the cotton 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 world cotton price will be lowered, which will benefit the Thai textile and garment 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 the Thai textile and garment industry in the future, all relevant departments, including government departments and private sectors, should pay attention to the research and development of upstream and downstream industries.

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Posted on November 28, 2018