Global cotton output is likely to rise 10 per cent to 25.4 million tonnes in 2017-18 marketing year on expected production increase in India and the US, a global body has said.
Global cotton output is likely to rise 10 per cent to 25.4 million tonnes in 2017-18 marketing year on expected production increase in India and the US, a global body has said. The production may go up mainly because of expansion in acreage by 3 million hectares to over 32 million hectares across the world, according to International Cotton Advisory Committee (ICAC). The worldwide output of the cash crop stood at 23.05 million tonnes(MT) last year. India’s marketing year runs from October to September.
The acreage has increased due to better cotton prices in 2016-17 and higher cotton price ratio to other competing crops during this year, ICAC said in a report. China, India and the US are the world’s top three cotton producing countries. As per ICAC, the global cotton consumption is projected to increase 2.7 per cent to 25.22 MT this year from 24.56 MT last year. “Mill use in China is projected to grow 1.5 per cent to 8.1 MT. Cotton mill use is also projected to grow moderately in India, Pakistan, Turkey, Bangladesh, Vietnam and Brazil,” the report added.
As far as cotton trade is concerned, it is likely to be stable at 8 MT in 2017-18 marketing year. The US will remain the largest exporter accounting for 40 per cent, or 3.1 MT of the world’s shipments. Bangladesh will remain the largest importer in 2017-18 accounting for 18 per cent, or 1.4 MT of the global imports, ICAC said.
Since global production is projected to edge over mill use during 2017-18, ending stocks could increase moderately and reach 18.7 MT with stocks to use ratio remaining little changed at 75 per cent. “However, ending stocks in China are projected to decline by 1.7 MT during 2017-18, while outside China stocks are projected to increase by 1.85 MT,” the report noted. ICAC is an association of governments of cotton producing and consuming countries.