Though world cotton acreage is expected to contract 1 per cent to 31 million hectares in 2016/17, the average yield is projected to expand 5 per cent to 735 kg/ha, leading global output to grow 5 per cent to 23 million tons. According to the International Cotton Advisory Committee (ICAC), global cotton consumption is forecast to remain at 23.6 million tons in 2016/17 as low prices for competing fibres make cotton less attractive. ICAC believes while mill use may remain stagnant, world cotton trade volume may increase 1 per cent to 7.4 million tons in 2016/17. In 2016/17, China’s imports are expected to decrease by 8 per cent to 947,000 tons as the Chinese government continues to restrict imports in order to reduce its sizeable stocks of cotton.

While, at the end of 2016/17, global cotton stocks are expected to be down 5 per cent to 20.4 million tons as mills exceed production by 930,000 tons. Here it may be noted that in the 2015/16 season, global cotton output fell 17 per cent to 21.7 million tons, driven by a 9 per cent reduction to 31.1 million hectares in area, while world average yield dropped 9 per cent to 699 kg/ha.