Global cotton production and consumption for the 2015-16 season will dip, says a Cotton Outlook forecast. There is a reduction of nearly 600,000 metric tons in world stocks, however, most of the fall is forecasted for China. Supplies in the rest of world are envisaged to alter only marginally. Global production forecast dipped by 38,000 metric tons, due to a sharp reduction in China. However, it has been balanced by higher figures in Brazil and some African cotton producing countries. Consumption is decently low, due to the downward adjustment for the US.
According to the United States Department of Agriculture’s (USDA) report, the global cotton output for 2015-16 will dip by 6 per cent to 111.5 million bales, which is 7.5 million bales below 2014-15 and the smallest global crop since 2009-10. USDA mentions that the decrease in production is because relative prices favour alternative crop plantings for 2015-16. Global cotton harvested area in 2015- 16 is forecast at 31.8 million hectares, which is 6 per cent below previous year. World cotton yield is estimated at 764 kg/hectare, which is a little below 2014 -15. Global cotton production is supposed to remain concentrated among a few countries in 2015-16.
Nearly 79 per cent of world production will be contributed by top five cotton-producing countries for the same period. Also, India is expected to surpass China in 2015-16, as world’s largest cotton producer with a crop forecast of 29.5 million bales.
