Declining consumer confidence will slow Cotton trade: ICAC
Commodity Online | November 06 2019
UPDATED 10:54:17 IST

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Due to slowing mill use and cotton imports in China - largely the result of the ongoing economic burden of the US-Sino trade war - both global cotton consumption and trade are expected to decline in 2019/20, the International Cotton Advisory Committee (ICAC) sauid in its monthly report.

Current projections estimate production in the coming year at 26.7 million tonnes, consumption at 26.2 million tonnes and overall trade at 8.8 million tonnes, ICAC said.

India is expected to lead the world in overall cotton production at 6 million tonnes, despite the country’s low yields of 440 kg/ha, among the world’s lowest and considerably below the global average of 780 kg/ha.

Similarly, China is projected to be the world’s top consumer at 8.05 million tonnes despite that figure being a 2% decrease from 2018/19. Both Mexico and Pakistan are expected to increase their imports, however, by 48% (to 141,000 tonnes) and 8% (to 711,000 tonnes), respectively.