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China & India consume more than half of the world's cotton

14
Apr '08
World cotton production for 2007/08 is estimated at 119.7 million bales, up 0.2 percent from the previous month's estimate. This increase comes mainly from higher estimated production in India and the United States. However, when compared with 2006/07, world cotton production is down 2.4 million bales, a 1.9-percent decline.

In 2007/08, India's production is estimated at 25 million bales, an increase of 3.2 million bales (15 percent) from the 2006/07 crop. Increasing acreage and use of genetically modified (GM) cottonseed appear to be driving production gains in India.

Consumption in 2007/08 is expected to rise 1.4 percent from the previous year's estimate to an all time high of about 125 million bales. Cotton mill use has risen sharply over the years in China, India, Pakistan, and Turkey, the world's leading cotton users.

China and India alone will account for about 57 percent (71 million bales) of world cotton consumption in 2007/08. World cotton supply is expected to remain fairly stable in 2007/08—increasing only 481,000 bales (0.3 percent) from the 219.5 million bales in the preceding year.

World ending stocks, which were at 61 million bales last year, are expected to fall by 1.6 million bales (2.5 percent) in 2007/08. This stock depletion follows the widening disparity between increasing world cotton consumption and a stable world cotton supply. Ending stocks in China are estimated at 16.3 million bales, down 2.3 million from the previous year.


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