‘Alarm bells’ for cotton producers
A lack of rain is “setting off alarm bells” for some of the world's top cotton producers, with China, the US, India, and Pakistan all suffering from some degree of drought.
The US has already reduced its projections for the 2023/24 season by 550,000 tonnes, and more cuts could be coming, according to the International Cotton Advisory Council (ICAC).
It said: “With the first month of the new season behind us, we are starting to get a clearer picture of how production, consumption and trade will unfold, and there are serious storm clouds on the horizon — or, in this case, no clouds at all.”
Added to this, inflation has slowed in China, which could lead to reduced business revenues, wage deflation and decreasing investments, it said.
Formed in 1939, the ICAC is an association of cotton producing, consuming and trading countries.
