The International Cotton Advisory Committee (ICAC) has forecast a fall of 2.7% in the world cotton area for the season 2007-08 mainly due to lower cultivation in USA. The total area under cotton is expected around 33.42 million hectare in 2007-08 as against 34.36 million hectare in 2006-07, ICAC report said.
While production in 2007-08 is projected to register a slight fall, consumption is expected to maintain the uptrend eroding the end season stock. World cotton production is forecast to be a trifle lower at 25.15 million tonne in 2007-08 as against 25.66 million tonne in 2006-07, resulting mainly from a decline in area while average yield is projected to be marginally higher at 753 kg compared to 747 kg in 2006-07.
Barring US, where a sizable fall of 19% is expected (from 4.70 million tonne to 3.81 million tonne), crop in the other leading producers is forecast to be higher. In India, the estimated production is 4.96 million tonne (approximately 292 lakh bales) in 2007-08, an increase of 8% from this year?s estimated crop of 4.59 million tonne (270 lakh bales). Pakistan crop is also projected to be higher by 9% at 2.28 million tonne in 2007-08 while only a marginally rise from 7 million tonne this year to 7.11 million tonne next year is forecast for China. The agency has forecast a firm trend in the world cotton prices during the season 2007-08 mainly due to a further depletion of the ending stock and a new other relevant factors.