Global cotton trade may dip 12% in 2008-09

The global cotton trade is likely to fall by 12 per cent to 7.3 million tonnes (MT) in 2008-09, following uncertainty about the global financial crisis and tightening credit availability for spinning mills, the International Cotton Advisory Committee (ICAC) said.

A decline in world cotton imports is mainly driven by an expected 24 per cent drop in imports by China to 1.9 MT, ICAC said in a statement.

Imports by the rest of the world are also expected to decline by seven per cent to 5.4 MT, it said, adding that there would be a six per cent fall in global cotton mill use to 24.9 MT in the next year.

ICAC said lowered global economic growth for 2009, projected decline in developed economies’ income, tightening credit availability for spinning mills and uncertainty regarding the consequences of the global financial crisis, are severely affecting cotton consumption worldwide.

Meanwhile, global cotton production is also expected to decrease by six per cent to 24.6 MT, driven by a decline in cotton area caused by increased competition from grains and oilseeds.