China is the heavyweight of the world cotton market. It is the largest importer and user of cotton on earth but it is forecast to lose its position as the world’s largest grower to India this year. With a huge stockpile, China will harvest its smallest crop in 12 years, 27 million bales, while India grows 29.5 million bales, says the USDA in its Cotton and Wool Outlook.
“Although growth has not occurred in China, mill use has expanded in countries such as India, Bangladesh and Vietnam,” says the USDA. Cotton consumption is up by 20 percent in India and Bangladesh in three years. “More impressive, however, is the growth seen in Vietnam recently,” forecast to double since 2012/13. Alone among the major cotton-using nations, Vietnam grows negligible amounts of cotton itself. As a result, it must import nearly all of the cotton it uses in its mills and could become the second-largest importer and the fifth-largest cotton user during the new marketing year.