The global cotton surplus will climb by 11 percent this marketing year to nearly 22 million tonnes, says the International Cotton Advisory Committee. China, the world’s largest importer, is limiting imports while trying to use up some of its large reserves. As a result, says the ICAC, exporter nations such as the United States and India will see a downturn in exports and a significant expansion of their stockpiles.
“Ending stocks in the United States are likely to increase 58 percent, to just over 1 million tonnes,” the committee predicts. End stocks in India, the second-largest exporter, are expected to increase by 40 percent to 2.4 million tonnes. Pakistan and Turkey, two routine importers, will need a smaller volume of imports. Overall, says ICAC, cotton exports will fall by 17 percent or nearly 1.5 million tonnes. The world cotton price has fallen in the face of huge supplies and low petroleum prices that make synthetic fibers attractive to clothing companies.