World cotton production for 2007-08 is projected lower at 26.1 million tonne as against the estimated 26.75 million tonne for 2006-07. The decline of 2.5% attributed to a fall in cotton area from 34.33 million hectare to 33 million hectare this year, according to the International Cotton Advisory Committee (ICAC) report.
In its latest release, ICAC has made significant changes from its previous release in the case of estimates of production and consumption at the global level and in leading countries like China, India, and Pakistan.
A major upward revision has been made in China from 7.23 million tonne to 7.84 million tonne. India?s crop has been projected higher now at 5.27 million tonne, as against 5.18 million tonne estimated previously. In terms of bales, this amounts to about 310 lakh bales.
The revised estimate shows that India will be widening its lead over the US, whose production is now estimated higher than the earlier, at 3.95 million tonne. In 2006-07, the estimated crop in India and the US was 4.76 million tonne and 4.70 million tonne respectively. ICAC has forecast a 3.3% increase in world cotton mill use to touch 27.5 million tonne in 2007-08 as against 26.62 million tonne in the last season.
China will continue to be the main driver in the growth of cotton mill use, with its consumption projected at 11.45 million tonne, an increase of 6% from the previous year?s 10.80 million tonne.
Indian mills use has been projected to post a rise from 3.99 million tonne in 2006-07 to 4.31 million tonne in 2007-08. To the mill use outstripping production, world cotton stock in 2007-08 is projected lower at 11.4 million tonne, a decline of 11% from the previous year?s 12.8 million tonne. World cotton imports are estimated to be 10% higher at 9.1 million tonne this year, due to a rebound in Chinese imports.