Although cotton output is expected to fall in China, the US, Brazil, and Australia, India’s cotton production is projected to increase by 8% in the upcoming season
According to the International Cotton Advisory Committee (ICAC), this is supported by normal monsoon expectations and stable acreage of around 11.8 million hectares in India.
The increase in Indian cotton production is expected to be absorbed by rising domestic consumption and strong yarn exports, particularly to China.
Global cotton acreage is forecast to decline by 1% to around 30.1 million hectares, cotton output is expected to decrease by 2% to 25.7 million tons and global cotton trade is also expected to reduce by 1.4% to around 9.5 million tons.
“This is mainly as global major cotton producers face lower acreage, adverse weather, and rising costs, thereby tightening global supply conditions,” ICAC said.
China, the world’s largest cotton producer, is expected to see output dip by 4% to 7 million tons, while in the US, cotton acreage is forecast to shrink by 6%, reducing output to its lowest level in three seasons.
Australia’s output is forecast to decline due to extreme dryness, limited irrigation water supplies, and elevated input costs and Brazil’s output may fall by 10% following a decrease in cotton cultivated area.
“India’s expanding cotton production amidst declining global output could strengthen its position in global markets, while tightening world supplies may provide additional support to cotton prices,” the cotton body added.
Image courtesy: Freepik
