ICAC scales down world cotton production estimate
Mumbai, Mar 26: International Cotton Advisory Committee (ICAC) has scaled down its production estimate for the current season, in its latest release of March 1, a release by East India Cotton Association said Taking cognizance of the recent reports, there is a fall in production in some countries like Argentina, Brazil and Australia.
The present estimate of the world crop is 24.94 million tonnes as against the previous estimate of 25.15 million tonnes. This is about five per cent lower than last year's crop of 26.29 million tonnes.
Chinese crop is now projected at 5.77 million tonnes, a nine per cent drop from last year's 6.32 million tonnes. Pakistan is also expected to harvest a lower crop of 2.16 million tonnes compared to 2.48 million tonnes. India is forecast to have nearly the same level of production at 4.12 million tonnes, only marginally below last year's 4.13 million tonnes.
ICAC envisages a 13 per cent drop in production in the southern hemisphere with significant declines of 10 per cent in Argentina, 24 per cent in Brazil and 12 per cent in Australia, mainly due to a fall in area and prevalence of advers weather conditions.
In contrast to a fall in production, world cotton consumption this year is estimated to post a three per cent rise to touch 24.36 million tonnes as against 23.66 million tonnes last year. China is expected to maintain the uptrend in cotton use and consume nine million tonnes this year, an eight per cent increase over last year's 8.33 million tonnes. Incidentlly, China's consumption is expected to be mroe than the combined consumption of the next three countries, like India, Pakistan and European Union (EU) and Turkey.
Consumption in USA is projected to register a decline from 1.46 million to 1.28 million tonnes.
World cotton trade this year is projected to reach a record of 8.93 million tonnes as aagainst 7.22 million tonnes last year, boosted mostly by China's record imports estimated to touch 3.42 million tonnes. ICAC expects a three per cent area increase in India, which may touch9.3 million hectares during 2006-07.