India Remains No. 2

India is expected to retain its current position as the second largest producer, user and exporter of cotton in the new season beginning in August, says the International Cotton Advisory Committee (ICAC).

India overtook the U.S. to occupy the number two position after China during the 2006/07 cotton season, says the ICAC. According to ICAC’s analysis of the current global cotton situation, India does not face any challenge to its position as American farmers are shifting to other crops like corn.

China continues to be the number one in production, consumption and imports. This despite a fall of over 100,000 metric tons (MT) in cotton production. China is estimated to produce 7.6 MT cotton this season, as compared to last year’s 7.7 MT. The fall in Chinese cotton production has led to increased exports by other countries.

World cotton exports are expected to rise by 10% to 9.1 MT from last season’s 8.2 MT. The ICAC has also forecast that the cotton prices will go up in the international market because of an expected decrease in the stocks-to-mill use ratio in the world.