The latest report from the U.S. Agricultural Counselor stated that India’s cotton production in 2016/17 was 5.77 million tons, lower than the USDA’s forecast of 5.88 million tons.
According to reports, India’s cotton planting area is 165 million acres, which is the same as USDA’s forecast, a year-on-year decrease of 7.6%. Yields are expected to improve, but below USDA forecasts.
At present, Indian cotton prices are still higher than international cotton prices, prompting textile companies to import foreign cotton to meet recent demand. The report predicts India’s cotton imports in 2016/17 to be 218,000 tons, consistent with USDA’s forecast, and slightly increases imports in 2015/16 to 230,000 tons, higher than USDA’s forecast of 223,000 tons. The main imported varieties are Australian cotton and American cotton. It is expected that the import speed will slow down after new flowers begin to appear in mid-October.
According to reports, India’s cotton consumption in 2016/17 was 5.225 million tons, consistent with USDA forecast. At present, Indian factories continue to increase the production of blended gauze to reduce the risks caused by cotton price fluctuations, and the proportion of chemical fiber usage continues to increase.
The report predicts that India’s cotton export volume in 2016/17 will be 914,000 tons, consistent with USDA’s forecast, and export volume in 2015/16 will be 1.263 million tons. The ending stocks of Indian cotton in 2016/17 are expected to be 2.445 million tons, down from 2.6 million tons in 2015/16. USDA forecasts are 2.32 million tons and 2.365 million tons respectively. India imports Australian cotton and US cotton, and the output of blended gauze continues to increase
