Cotton production is expected to decline by as much as 29% in the USA from 4.18 MT in 2007-08 to 2.95 MT in 2008-09. Though significant falls in production are expected in Turkey and Brazil, production could increase in India, Pakistan and Australia, according to the latest report released by International Cotton Advisory Committee (ICAC).
A slight fall is projected for Indias mill use from 4.01 MT in 2007-08 to 3.93 MT in 2008-09. Indian exports are also projected to fall to 1.24 MT from 1.5 MT 2007-08, the ICAC report said.
On the consumption front, ICAC expects a 6% fall in cotton consumption to touch 24.9 MT as against 26.4 MT in 2007-08. Cotton mill use is stated to have been dented due to lower expected global economic growth in 2009, projected decline in incomes of developed economies in 2009, tightening credit availability for spinning mills and uncertainty regarding the consequences of the worst financial crisis in 75 years.
Mill use in China is expected to see a 7% fall to 10.1 MT in 2008-09 from 10.9 MT in 2007-08. A large quantity of unused import quota is said to be available in China until the end of 2008 and it will release a tariff rate quota of 8.94 lakh tonne on January 1 subject to a 1% duty under its WTO accession commitments, the report said.