MUMBAI: The higher price of cotton in 2005-06 indicates higher plantation area in 2006/07. Preliminary indications suggest that cotton plantation area will grow by about 3% to 35.7 million hectares.
According to International Cotton Advisory Council (ICAC) world cotton production is estimated at 25.2 million tons in 2005-06, down 1.2 million tons (4%) from last season. On the other hand, consumption is projected to increase by about 5,00,000 tons (2%) to a record 24.4 million tons. However, despite the rise, consumption will remain below production. This will in turn lead to increase in world ending stocks for the second consecutive season to 11.3 million tons in 2005-06.
Production is expected to increase in China (Mainland), India, Turkey and Brazil but forecast is down in the US. World cotton consumption is expected to continue to increase in 2006-07, increasingly concentrated in China (Mainland), India, Pakistan, and Bangladesh.
According to China Cotton Association's (CCA) survey, higher seed cotton procurement price has boosted Chinese farmersí planting intention. 2006 cotton planting in China is forecasted to reach 5.6 mil hectares, up 9.4% from 2005. Total cotton yarn production for the calendar year 2005 recorded 14.12 mil tons, up 29% from previous year. Cotton fabrics output expanded 28.5% to 19.66 billion square meters.