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Global cotton use to exceed production in 2016-17: USDA
20
May '16
Source: USDA, World Agricultural Supply and Demand Estimates reports.
Source: USDA, World Agricultural Supply and Demand Estimates reports.
For the second consecutive season, global cotton consumption will expand slightly and surpass production in 2016-17, according to the initial projections by the US department of agriculture (USDA).

Compared to world cotton production forecast of 104.4 million bales in 2016-17, cotton mill use is projected at 110.8 million bales, the USDA said.

After a slight decrease in 2015-16, world cotton mill use is projected to rebound due to modest growth in global gross domestic product (GDP) and the lagged effect of lower cotton prices.

China, India, and Pakistan are expected to lead world cotton mill use and account for a combined 62 per cent of the total in 2016-17, similar to 2015-16.

On the production side, a modest increase is expected after a 16 per cent reduction in 2015-16 that resulted from inclement weather and pest damage in a number of producing countries.

Despite reduced global area expectations in 2016-17, a yield rebound is responsible for the crop increase, the USDA said in its initial projections.

India, China, and the United States are expected to account for a combined 63 per cent of global cotton production in 2016-17, compared with 64 per cent in 2015-16. (RKS)

Fibre2Fashion News Desk – India


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