In its latest release, the International Cotton Advisory Committee (ICAC) has projected that India is expected to emerge as the world?s second largest exporter of cotton in 2007-08.
India?s cotton exports, at a new record at 1.2 million tonne in 2007-08, thanks to a record production, and the US will continue to dominate with its exports projected at 3.6 million tonne in 2007-08, up 29% from 2.8 million tonne in 2006-07.
World cotton imports are forecast to be up by 9% in 2007-08, due to a projected rebound of Chinese imports to 3.2 million tonne, an increase of 39% from last year?s 2.3 million tonne.
China will continue to drive the upswing in consumption during 2007-08, which is expected to be a record at 11.45 million tonne, 6% above last year?s 10.8 million tonne. India is also projected to consume more cotton, placed at 4.17 million tonne against last year?s 3.93 million tonne.
A marginal increase is also projected for Pakistan, while US consumption is expected to be almost at last year?s level of around one million tonne.
World production of cotton in 2007-08 is now estimated at 26 million tonne and consumption at 27.50 million tonne. Production is down 3% compared to 2006-07, due to a drop in area, with world average yield remaining stable at 773 kg per hectare.
The major fall in production is in the US, with China also expected to see a marginal decline. Indian crop, on the other hand, is placed 10.7% above the previous year?s level (4.76 million tonne) at 5.27 million tonne.
As global use of cotton is forecast to outstrip production, 10% erosion in world cotton stock to 11.8 million tonne is anticipated. This, as well as higher imports by China, is expected to exert upward pressure on world cotton during the current season.