Last year, around 2.6 million tons of cotton were sold by the Chinese government through the end of September 2016. Assuming a similar volume is sold this year, the total volume held by the Chinese government will reach 6 million tons by the end of 2016-17. As a result, China's total stocks, including those in the private sector, are forecast to reach 9.3 million tons at the end of 2016-17, accounting for 53 per cent of world stocks, the ICAC report said.
In 2017-18, world cotton consumption is projected to exceed production by 1.2 million tons and stocks are expected to decline for the third consecutive season to 16.7 million tons. China's ending stocks could fall by 19 per cent to 7.5 million tons, accounting for 45 per cent of world stocks at the end of 2017-18. This would mark the first season since 2011-12 that China's stocks account for less than half of world inventories. World ending stocks outside of China are forecast to grow by 7 per cent to 8 million tons, which could place downward pressure on prices later this season.
Meanwhile, global cotton production is forecast to grow by 23.1 million tons on a planted area of 30.4 million hectares in 2017-18. India's cotton production is projected to rise by 2 per cent to 5.9 million tons, as area expands by 7 per cent to 11.2 million hectares. China's cotton production may increase by 2 per cent to 4.8 million tons, but will greatly depend on whether a subsidy is provided this year. While high cotton prices relative to competing crops is likely to lead to a large increase in planted area expected in the US in 2017-18, production is forecast to rise by just 1 per cent to 3.7 million tons. Assuming normal weather patterns, the harvested area is projected to expand by 3 per cent to just under 4 million hectares. Pakistan's cotton production is forecast to grow by 11 per cent to 1.9 million tons. Its cotton area is projected to expand by 3 per cent to 2.5 million hectares as high prices this season encourage farmers to plant, and the average yield may grow by 8 per cent to 736 kg-ha as the crop recovers from pest pressure.
After declining by 1 per cent to 24 million tons in 2015-16, world cotton consumption is expected to remain stable in 2016-17. Given the strong demand this season and anticipated world economic growth in 2017 and 2018, world mill use is forecast to increase by 1 per cent to 24.3 million tons, the report said.
World trade is expected to expand by 3 per cent to 8 million tons in 2017-18. China's import volume is expected to rise by 11 per cent to 1.1 million tons in 2017-18 as its mill use continues to outpace its production. Bangladesh's imports are projected to rise by 3 per cent to 1.5 million tons in 2017-18, while Vietnam's imports are forecast to increase by 7 per cent to 1.24 million tons. The US is expected to remain the world's largest exporter and its volume is forecast to rise by 5 per cent to 2.9 million tons in 2017-18. Exports from India, the world's second largest exporter, are projected to grow by 3 per cent to 990,000 tons. (RKS)
Fibre2Fashion News Desk – India
Fashion | On 25th Jul 2017
Global fashion luxury brand Michael Kors Holdings Limited has reached ...
Apparel/Garments | On 25th Jul 2017
VF Corporation has recorded revenue of $2.4 billion, up 2 per cent,...
Textiles | On 25th Jul 2017
Egypt has signed a €1.5 million ($1.74 million) cooperation agreement ...
Angelina Francesca Cheang
'Consumers in the age-group 21 to 38 are driving the activewear trend'
Textrade International Ltd
We believe in vocational education for entry-level employees, offering...
‘There has been an increase in demand for water based inks, rather than...
Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...
The Indian market has huge potential in technical textiles, and by far,...
Technical Absorbents Ltd
Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...
Whistling Woods International School of Fashion
<div>A lack of upgraded courses in costume designing and fashion as per...
Bani Batra’s couture wedding collection is inspired by traditional Indian...
Sonam and Paras Modi's Sva Couture is synonymous with head-turning...
Do you think the sustainability space has the needed tools and resources available for a business to lead change?Yes No Skip
Do you think adopting a sustainable approach will be a profitable move for your business?Yes No Skip
Do you want the world to know about your sustainability journey and your business’ environmental footprint?Yes No Skip
Thanks for your valuable feedback. Claim your free latest sustainability e-book.