World cotton production declines

By Staff
|
Google Oneindia News

Mumbai, June 3 (UNI) The ensuing season 2007-08 may witness a slight drop in world cotton production to 25.14 million tonnes as against 25.34 million tonnes in 2006-07, according to the International Cotton Advisory Committee (ICAC).

The decline is mainly due to an expected fall in production in both China and USA. The Chinese crop in 2007-08 is projected at 6.61 million tonnes as compared to 6.73 million tonnes this year, while US production for the two years is forecast to be 4.10 million tonnes and 4.70 million tonnes respectively, an ICAC release said.

Indian crop is projected at yet another record level of 4.67 million tonnes in 2007-08 as against 4.59 million tonnes this year.

Significantly, these projections indicate that India would emerge as the second largest producer of the commodity in the coming season.

ICAC visualises a slight increase in production from this year's 2.11 million tonens to 2.27 million tonnes next year in Pakistan.

China, India and USA are the three leading cotton producing countries in the world, which contribute as much as 61 per cent of world output of cotton in 2007-08.

In contrast to a slight fall in production, world cotton consumption is expected to continue to rise for the fifth year in succession during 2007-08. As against 26.14 million tonnes this year, consumption is projected at 26.69 million tonnes next year.

China will continue to be the main contributor to the increase with its consumption next year estimated at 10.89 million tonnes or as much as 41 per cent of the global consumption of the commodity.

India and Pakistan are also expected to consume more cotton next year, while US consumption is projected to decline from 1.08 million tonnes this year to 0.97 million tonnes next year, further confirming the decline in the country's spinning industry, the release said.

International trade in cotton has been projected by the ICAC to post a nine per cent increase to touch 9.1 million tonnes in 2007-08, provided Chinese imports rise by around one million tonnes next year as projected. Imports by China had touched a record 4.2 million tonnes in 2005-06, but are estimated to be much lower at 2.85 million tonnes this year.

Due to consumption surpassing production, a depletion is expected in world end-season cotton stock, from this year's 11.43 million tonnes to 10.19 million tonnes in 2007-08. This is bound to push up world cotton prices, the release added.

UNI

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