ICAC has revised world exports for 2021/22 upwards to 10.2 million tonnes and world consumption up to 25.8 million tonnes.

Although there are still uncertainties regarding covid, consumption shows no signs of slowing, it said. Retail sales are picking up, fuelled by the untapped savings from last year.

World cotton production for the 2021/22 season has been revised down to 24.9 million tonnes, with area under cotton also revised to 32.8 million hectares, mostly because of lower US crop.

ICAC said: “On the supply side, growing infections in cotton-consuming and textile-supplying countries like Bangladesh and Vietnam have created a perfect mix for a bullish market.

 “Until December 2020, production seemed to outpace consumption for the season. However, consumption estimates currently formed on the pace of recovery at the end of the 2020/21 season showed a refreshing recovery, whereas the 2020/21 season saw cotton production fall by 7% to 24.2 million tonnes, with double digit decreases in crop size reported from the US, Brazil, Pakistan, West Africa and Turkey.”

The US remained the world’s largest exporter with 2020/21 exports at 3.6 million tonnes, amounting for 34% of total global exports, benefiting from the US-China Phase One Economic and Trade Agreement signed in January 2020, which covers cotton and mandates China to increase its imports (of agriculture and other sectors) from US.