ICAC: India Cotton Exports to Triple in 2010
June 4, 2009 Press Trust of India
World cotton trade is expected to increase by 8% to 6.5 million tons in fiscal year 2010 (FY10) with India contributing most to it, the International Cotton Advisory Committee (ICAC) said on Tuesday.
India may account for most of the expected rise in world exports, with the country’s shipments forecast to almost triple to 1.1 million tons, the ICAC said in a statement.
Chinese imports are projected to rise marginally to 1.45 million tons as its government has started selling cotton from its national reserve to textile mills.
“Beginning at the end of May 2009, the government of China started selling cotton from the national reserve to domestic textile mills. The quantities sold will affect FY10 Chinese imports,” ICAC said.
The cotton body also forecasts US exports to decline by 11% to 2.3 million tons in FY10.
Commenting on cotton prices, the body said globally the rates are likely to decline marginally in FY10 despite higher export estimates due to an expectation of rising stocks. The opening stocks in FY10 are estimated at 60 million bales compared to 56.9 million bales in the previous year.
The global price may be 54 cents a pound in FY10, as compared to an estimated 60 cents a pound in FY09. However, major uncertainties regarding projected cotton trade in this year pose substantial risks to this forecast, ICAC said.
It also said that world cotton production is expected to decline for the third consecutive season to 23.4 million tons, down by 1%. Production is expected to decline in Brazil, China, Uzbekistan and Turkey.
The use of cotton by mills across the world is expected to increase by two percent to 23.3 million tons in FY10 and the projection is based on a modest recovery in world economic growth in 2010, ICAC said.
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