World cotton production is forecast to grow by one per cent in 2017-18. Global consumption may recover by one per cent as cotton prices decrease. Cotton production in India is projected to grow by two per cent. World cotton mill use is expected to remain unchanged due largely to weak global economic growth and competition from polyester.
In China, after several seasons of decline, mill use is projected to rise by two per cent in 2016-17 and by one per cent in 2017-18. The gap between China’s domestic cotton prices and international cotton prices has decreased, making yarn imports less attractive than in recent seasons. In India, after declining by three per cent in 2016-17 due to high domestic and international cotton prices, mill use is projected to recover by one per cent in 2017-18.
During the first seven months of 2016-17, China’s cotton imports were up six per cent from the last season during the same time period. China’s total volume of imports is expected to rise by two per cent in 2016-17. Imports by Bangladesh are expected to rise by six per cent and Vietnam’s imports are projected to grow by 17 per cent in 2016-17. India’s exports are projected to decline by 23 per cent in 2016-17.