By IAC Staff
India, the world’s second largest cotton exporter, may make a small recovery in 2015-16, with exports expected to increase by 15 percent to 1.1 million tons, according to the International Cotton Advisory Committee (ICAC). On the other hand, China’s share in the global cotton market is declining, according to the ICAC, whereas the rest of Asia has increased imports and consumption.
China recently announced that it would limit its cotton imports in 2016 to 894,000 tons, as much as it did in 2015, to encourage consumption of domestic cotton. China’s cotton supply in 2015-16, excluding imports, is estimated at 18 million tons, and its annual domestic consumption is expected to by 7.7 million tons. China will meet the demand for high-quality cotton through imports.
Although China will remain the world’s largest cotton importer in 2015-16, its share in world imports has been falling significantly. It was 55 percent in 2011-12 but may reach barely 17 percent in 2015-16. The rest of Asia accounted for 31 percent of world cotton imports in 2011-12. However this is expected to double in 2015-16 to 60 percent. Bangladesh, Vietnam and Indonesia are the three largest cotton importers in Asia besides China.