China is set to return as a major cotton importer. Imports are expected to be around five million bales in 2017-18.

Once the world’s top cotton importer, China has seen its imports shrink from more than five million tons in 2011-12 to around a million tons last year due to its efforts to reduce state stockpiles of the fiber.

Now, after several years of auctions to low state stocks and with demand improving, buyers are expected to return to the market to supplement a production deficit at home.

Domestic cotton use is expected to increase by 1.5 million bales to 41.5 million bales in 2018-19.

Production growth in China has been lean due to limited farmland and high labor costs.

The plan is also likely related to pressure from the United States for higher imports of American farm goods. China has agreed to significantly increase its purchases of American goods and services, and cotton is one of the top agricultural exports of the United States.

The industry is also lobbying for more cotton supplies amid a hike in prices that could drive more manufacturers to use cheaper manmade fibers instead.

Production of viscose staple fiber will increase further in 2018, pulling down prices.

The cotton textile sector is expected to use four million tons of viscose fiber by 2019.