ICAC Projects Double Digit Production Decline in China

By Jim.Robinson|November 5, 2009

On November 3, the International Cotton Advisory Committee (ICAC) released its latest 2009-10 projections for world cotton production, cotton mill use and cotton imports. The report reads:

World cotton production is projected at 22.3 million tons in 2009-10, 5 percent lower than in 2008-09. This decline in global production is driven by China, where the cotton crop is expected to fall to 6.75 million tons, 16 percent less than last season. On the other side, cotton output in India is projected to increase to a record of 5.3 million tons, 8 percent more than last season. Cotton production in the southern hemisphere is expected to rise by 4 percent to 2.1 million tons in 2009-10, driven by Australia and Argentina. Production in Brazil could decline slightly.

World cotton mill use is expected to recover by 2 percent to 23.6 million tons in 2009-10, driven by the global economic rebound. Asia is expected to be the main engine of growth in cotton spinning this season, with a projected increase in cotton consumption of 620,000 tons to 18.3 million tons, accounting for 77 percent of global cotton mill use.

World cotton imports are forecast to rise by 8 percent to 7.0 million tons in 2009-10. The Secretariat expects Chinese imports to increase by 18 percent to 1.8 million tons, but their eventual size will depend on government decisions regarding import quotas and reserve management. Exports from India could rebound to 1.4 million tons, driven by a large exportable surplus. Exports from Uzbekistan and Australia are also expected to expand, whereas U.S. exports could decrease by 18 percent to 2.4 million tons.

Source: ICAC News Release