Global cotton output may rebound by 14% in 2010-11: ICAC

World cotton output is likely to rebound by 14 per cent to 25 million tonne in the 2010-11 crop year due to an increase in the crop area following rising prices, a global body has said.

According to the International Cotton Advisory Committee (ICAC), "The world cotton production is expected to rebound by 14 per cent in 2010-11 to 25 million tonne" mainly due to an expansion of the area under the crop.

The cotton crop year varies in different countries. For instance in India, the cotton crop year runs from October to September.

Last year, the global cotton output stood lower at 22 million tonne. However, this year, globally farmers are expected to bring more area under the fibre crop this year enthused by price hike, it said, adding declining prices of grains and oilseeds may also encourage farmers to go for cotton farming.
    
The ICAC has projected cotton prices at the Cotlook A Index, a global index that monitors cotton prices, to remain as high as 87 cents per pound (around Rs 40) in 2010-11, against 78 cents per pound this year. In 2008-09, on an average cotton prices remained at 61.20 cents per pound.
     
China, India and the US are the top three cotton producing countries.
     
According to ICAC projection, the global cotton consumption is estimated to increase marginally to 24.9 million tonne in 2010-11, against 24.5 million tonne last year, it said.
    
"World cotton mill use is projected to continue to recover in 2010-11 pushed by continued improvement in global economic growth but limited by high cotton prices and a slowing re-stocking effect," it said.
     
The global body also indicated that cotton supply in countries like the US, Australia, parts of Africa and Asia located in the northern hemisphere is expected to remain tight till the harvest of 2010-11 crop in August.