ICAC projects cotton exports of India likely to grow by 3pc

India’s cotton exports likely will grow 3 percent to 990,000 tonnes in the current year, with production to rise by 2 percent to 5.9 million tonnes, according to projection by the International Cotton Advisory Committee (ICAC).

World cotton trade is estimated to expand by 3 percent to 8 million tonnes in 2017-18, with China’s import volume set to grow by 11 percent 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.

Bangladesh’s imports are projected to rise by 3 percent to 1.5 million tonnes in 2017-18, while Vietnam’s imports are forecast to increase by 7 percent to 1.24 million tonnes.

The United States will remain the world’s largest exporter with its volumes rising by 5 percent to 2.9 million tonnes in 2017-18, while India’s exports are projected to grow by 3 percent.

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 and 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 percent to 24.3 million tonnes.

According to projections, India’s mill consumption, however, is likely to drop by 3 percent to 5.1 million tonnes in 2016-17 but is forecast to recover in 2017-18 by 1 percent to 5.2 million tonnes.