Global cotton imports will fall 6 percent in 2008/09 to 7.8 million tons, pulled down by declining cotton mill use, an international farm group said on Monday. The International Cotton Advisory Committee secretariat said in a monthly report that declines in cotton imports will be even greater in China (mainland), where imports are expected to drop 10 percent to 2.3 million tons.
Fewer imports, the ICAC said, are the result of a 3 percent drop in global mill use in 2008/09 to 25.5 million tons. Cotton imports are facing a 4 percent decline in mill use in China (mainland) to 10.5 million tons.
The rising costs of production, the strength of the yuan against the US dollar and the slowing demand from textile importing countries are responsible for declines in China, ICAC said. Additionally, competition from alternative crops is expected to shrink global cotton production by 6 percent to 24.7 million tons.
The United States is driving the production drop, but Turkey, Brazil and Egypt are also forecast to have a smaller output in the year. India, Pakistan and Australia, on the other hand, are expected to experience a rise in cotton production.
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