Global cotton consumption is anticipated to drop below production levels for the 2022-23 fiscal, according to the latest report from the International Cotton Advisory Committee (ICAC). Both cotton production and consumption are projected to decrease, but the decline in consumption is expected to be more significant. This will result in a larger gap between consumption and production for the first time in two years.

In its May 2023 report, the International Cotton Advisory Committee (ICAC) stated that global cotton production is expected to decrease to 24.55 million metric tons (MMT) in 2022-23, down from 25.18 million MMT in 2021-22. Previous estimates from the international organisation indicated production levels of 23.99 MMT in 2020-21, 26.26 MMT in 2019-20, 25.98 MMT in 2018-19, and 27 MMT in 2017-18. These figures demonstrate that global cotton production has not been able to surpass the peak achieved five years ago, remaining volatile and expected to decline further this year.

Regarding consumption, the ICAC reported that global cotton usage is expected to reach 23.79 million metric tons (MMT) in 2022-23, a sharp decline from the 25.81 MMT consumed in 2021-22. World cotton consumption has also exhibited volatility in recent years. The ICAC estimated consumption levels of 25.69 MMT in 2020-21, 23.05 MMT in 2019-20, 26.01 MMT in 2018-19, and 26.36 MMT in 2017-18.

The global trade body projected world’s opening stock at 19.42 MMT in 2022-23 (last year: 20.19 MMT), exports at 8.98 MMT (9.73 MMT), imports at 8.98 MMT (9.60 MMT) and ending stock at 20.19 MT (19.42 MT). Ending stock/mill use ratio was projected at 69.57 per cent for 2022-23 (last year: 61.85 per cent) globally except China. Ending stock/mill use ratio for China increased by 118.07 per cent from 103.46 per cent of 2021-22.

As per the report, ICAC projected India’s cotton production at 5.2 MMT and consumption at 5.01 lakh bales during 2022-23. Last year, the production and consumption were estimated at 5.22 MMT and 5.30 MMT, respectively.

For the current year, China's production and consumption are expected to be 5.98 million metric tons (MMT) and 7.5 MMT, respectively. In comparison, last year's figures were 5.73 MMT for production and 8.31 MMT for consumption. The United States is likely to see a reduction in production, with an estimated 3.20 MMT in 2022-23 compared to 3.81 MMT in 2021-22. Meanwhile, Brazil's production is projected to be 3.02 MMT, up from 2.55 MMT in the previous year.

Fibre2Fashion News Desk (KUL)

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