India to become world’s main cotton producer: Report
The consumption of cotton will be more than its supply in 2021, according to the report by IndexBox. This will cause a high price of cotton and a reduction in the global cotton stock.
China
The consumption of cotton will be more than
its supply in 2021, according to the report by IndexBox. This will cause a high
price of cotton and a reduction in the global cotton stock.
As the demand
from the textile industry increases, the global cotton stock has fallen to a
three-year low. Also, the production of cotton is expected to increase by 5% in
2021. As the countries like Brazil, Australia, Pakistan, and the US have
favourable weather conditions and increasing harvesting land, high cotton
yields are projected from here. China will experience low cotton production due
to which India will become the main producer with a 24% share of the world
total.
Due to cheap
labour in India, Vietnam, Bangladesh, and Pakistan, these four countries will
become the main points for the global textile industry. Competition from other
similar markets like hemp or flax might hold back market growth.
India was the
key exporter of cotton lint after the US and exported 965k tonnes worldwide. In
terms of value, India backed second position by exporting $1.4 billion with an
11% share of global exports. In 2020, the average cotton lint export price
amounted to $1,501 per tonne in India. India imported 174K tonnes of cotton
while China imported 1.9M tonnes. In terms of value,
China forms the largest market for imported cotton lint all over the world.
Source – Global Trade
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