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India to remain top cotton producer

In 2015-16, world cotton production declined by 19 per cent. This was a result of both a nine per cent contraction in area due to low cotton prices and a ten per cent fall in world average yield.

India will likely be the world’s largest producer for the third consecutive season with production growing by six per cent. An early and adequate monsoon, a higher minimum support price, and the prospect of better returns from cotton compared to competing crops have encouraged farmers in India to expand area by eight per cent.

Cotton area in China is expected to expand by three per cent due to high cotton prices and the new subsidy announced during the planting season. Production in the United States is forecast to increase by 12 per cent. After two seasons of decline, cotton area in Pakistan is projected to grow by eight per cent.

World cotton consumption is expected to increase by two per cent. China leads as the world’s largest consumer of cotton. High domestic and international cotton prices and constrained supply are likely to limit any growth. After a three per cent decline last season, India’s consumption is forecast to recover by three per cent. Pakistan’s consumption is expected to increase by three per cent.

 
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