Fall in global cotton consumption and production
World cotton consumption decreased 3% to 23.6 million tonnes in 2015/16, according to a report from the International Cotton Advisory Committee (ICAC). Low polyester prices and weak global economic growth mean that it is likely to remain at the same level in 2016/2017.
China remains the world’s largest consumer of cotton with mill use estimated at 7.1 million tonnes in 2015/2016. The ICAC expects a 5% decreases to 6.7 million tonnes in 2016/2017. Cotton consumption in India, which fell 3% in 2015/2016 to 5.2 million tonnes is expected to rise 4% in 2016/2017. Mill use in Pakistan in 2015/2016 was 2.2 million tonnes and a 1% rise is projected in 2016/2017. There is expected to be significant growth in Bangladesh (10%) and Vietnam (16%).
World cotton production dropped 17% to 21.8 million tonnes in 2015/2016 due to a shrinking of the world cotton area and several countries experiencing below-average yields. The ICAC forecasts a 6% increase in production in 2016/2017 as yields improve with India remaining the largest producer, contributing 6.5 million tonnes. Production in China is expected to fall 10% to 4.6 million tonnes due to reduced subsidies and higher production costs.
