Global cotton production, consumption set to rise in 2024-25: ICAC

02 Apr '24

2 min read

Pic: Adobe Stock

Insights

ICAC forecasts growth in global cotton sector for 2024-25, with anticipated increases in production, consumption and trade.
Weather is a critical factor influencing production trends.
The cotton-producing area is expected to rise by 3 per cent, production by over 2.5 per cent, and consumption by 2.9 per cent, with trade projected to grow nearly 4 per cent.

The International Cotton Advisory Committee (ICAC) has projected increases in the cotton-producing area, production, consumption, and trade for the next season, 2024-25. The global trade body has stated that it is somewhat early in the process to become overly excited, but if the initial ICAC forecast holds true, the 2024-25 season will show gains in area, production, consumption, and trade.

According to the latest report by the ICAC, weather will be a crucial factor in driving cotton production upwards. It has been the only factor affecting cotton production in recent years. Weather conditions were responsible for the reduction in the cotton area in the current season. Yields are expected to decrease by 0.12 per cent to 768 kg per hectare. Global cotton yield has been on a decline since the 2017-18 season due to extreme weather caused by global climate change and pest pressures exacerbated by adverse weather conditions, which are also a result of global climate issues.

The ICAC's projections for 2024-25 suggest that the cotton-producing area may increase by 3 per cent from the 2023-24 acreage, reaching 32.85 million hectares. Production is anticipated to rise by just over 2.5 per cent to 25.22 million tonnes. Consumption is forecast to increase by 2.9 per cent to 25.37 million tonnes. Global cotton trade (imports and exports) is expected to grow by nearly 4 per cent from the 2023-24 cotton season to 9.94 million tonnes.

The ICAC's current price forecast for the season-average A-index for 2023-24 ranges from 85.67 cents to 100.62 cents, with a midpoint of 92.20 cents per pound.

Fibre2Fashion News Desk (KUL)

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