China will remain the world’s largest cotton importer but its purchases during the current trade year, estimated at 1.6 million tonnes, would be only 30 percent of the total of 2011/12, when they peaked, said the International Cotton Advisory Committee. Chinese imports this year are expected to run 12 percent below last season, reflecting the huge stockpile held by the government – half of the world’s stocks – and a decision by China to discourage imports.
“Given the large volume of production and reserves, imports are likely to be restricted again in 2016,” said the intergovernmental group in its monthly review. China is second to India as the world’s largest grower with a crop forecast for 5.4 million tonnes, down 16 percent from last season. Despite a smaller cotton crop worldwide, little improvement is expected in the average price.