Global production of cotton is expected to decrease in 2018-19. Although Brazil and West Africa are expected to see an uptick in planted area, they are unlikely to be significant enough to offset losses in Australia, China, India and the United States.

The decline in global ending stocks continues as well, down 22 per cent from 2014-15. The trend is expected to continue next year, with the projected six per cent decrease further eroding stocks.
Due to uncertainties in the world economy and trading market, the global consumption forecast for 2018-19 has been revised downward to 27.5 million tons. Demand for Indian cotton is robust from China as a trade war is prompting the world's top consumer to avoid imports from the United States.

Indian cotton prices are ruling 10 per cent lower than international prices. The minimum support price is up 26 to 28 per cent, notwithstanding favorable monsoon conditions.