India sees the possibility of surpassing Chinese cotton output of 6 million tons by touching 6.3 million tons in 2014-15. As China, the largest producer of cotton is expected to witness a decline by 10 percent from 6.7 million tons in 2013-14 to six million tons in 2014-15 mainly due to the Chinese government’s decision to according to the International Cotton Advisory Committee.
The decline in Chinese cotton production will be seen mainly over the Chinese government’s decision to constrain its support to Xinjiang region, China’s top cotton growing area, for cotton. Due to this, area outside the region is expected to see a substantial fall in its cotton output.
According to ICAC, although lower cotton prices are welcomed by the mills in China, a lot of damage has been done to the industry in the last few years by the Chinese government’s cotton policy.
The reserve policy of China only led to decline in mill consumption. However, in 2014-15, the decline in consumption in China is expected to slow, falling by just one percent to 7.8 million tons.
China’s decline will be partially offset by imports from Bangladesh, Indonesia and Vietnam, which are expected to import a total of 2.4 million tons in 2014-15.
India, Pakistan and Turkey, the three next largest consumer are all expected to see growth in their mill use in 2014-15.
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