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The International Cotton Advisory Committee (ICAC) has projected that India's cotton exports will grow 3 per cent to 990,000 tonnes in the current year, with production likely to rise by 2 per cent to 5.9 million tonnes.
World cotton trade is estimated to expand by 3 per cent to 8 million tonnes in 2017-18, with China’s import volume set to grow by 11 per cent to 1.1 million tonnes for the year. ICAC cites the growth in China's imports to its surging mill use, which continues to outpace its production.
Import demand Bangladesh’s imports are projected to rise by 3 per cent to 1.5 million tonnes in 2017-18, while Vietnam’s imports are forecast to increase by 7 per cent to 1.24 million tonnes.
The United States will remain the world’s largest exporter with its volumes rising by 5 per cent to 2.9 million tonnes in 2017-18, while India's exports are projected to grow by 3 per cent.
Futures firm In the international market, cotton futures remained firm at 77.86 cents for a pound for ICE May Futures.
In its latest statement, the international body said global cotton production is forecast to grow by 23.1 million tonnes on a planted area of 30.4 million hectares in 2017-18.
While projecting India's output at 5.9 million tonnes, ICAC also noted that India's cotton area has expanded by 7 per cent to 11.2 million hectares.
ICAC referred to slackness in world cotton consumption in the previous year but projected a robust consumption trend for the coming year.
“After declining by 1 per cent to 24 million tonnes 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 tonnes,” ICAC noted.
According to projections, India's mill consumption, however, is likely to drop by 3 per cent to 5.1 million tonnes in 2016-17 but is forecast to recover by 1 per cent to 5.2 million tonnes in 2017-18.
China mill consumption Notably, the mill consumption in the neighbouring China is likely to grow for 2016-17 by 2 per cent to 7.6 million tonnes and by 1 per cent to 7.7 million tonnes in 2017-18.
Similarly, the mill consumption in Bangladesh continues to grow due to strong textile exports, with its mill use is likely to rise by 5 per cent to 1.5 million tonnes in 2017-18.
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