With its volume increasing by 10 per cent to 1.2 million tonnes, Bangladesh is expected to remain the world's top importer of cotton in 2016-17. Following it is Vietnam that imports 1.1 million tonnes a 15 per cent rise, says the International Cotton Advisory Committee (ICAC), a platform of governments of cotton producing and consuming countries.

In a release, the ICAC has said in 2016-17, world cotton consumption would presumably remain unchanged from 2015-16 at 23.8 million tones. But it is projected to exceed production by 1.3 million tonnes. Consumption was 23.78 million tonnes in 2015-16 and 24.20 million tonnes in 2014-15. Production was 21.10 million tonnes in 2015-16 and 26.20 million tonnes in 2014/15.

As a result, world stocks are projected to decline by 7.0 per cent to 18.1 million tonnes which was 19.37 million in 2015-16 and 22.31 million tonnes in 2014-15. Although China's consumption is forecast to decline for the seventh consecutive season by 2.0 per cent to 7.2 million tonnes, it will continue to be the world's largest consumer of cotton, the release said.

It also said although domestic cotton prices have fallen since China implemented its direct production subsidy policy (they remain above levels on the international market and well above polyester prices). India's cotton consumption is projected to remain stable at 5.2 million tonnes as mills increase the share of other fibers in cotton-blended yarns. Use of the commodity by Pakistan's mills is expected to escalate by 23,000 tonnes to 2.3 million tonnes assuming that the energy situation improves.

Exports from the United States are projected to increase by 26 per cent to 2.5 million tonnes while exports from India, the second largest exporter, is forecast to fall by 35 per cent to 8,20,000 tonnes. In 2016-17, the world cotton area is forecast to fall by 1 per cent to 30 million hectares, which is the smallest amount of area under cotton since 2009-10, when the planted area reached 29.7 million hectares.