ICAC pegs record global cotton output at 126 mn bales

World cotton production is likely to touch a record 126 million bales in the 2011-12, driven by an expansion in plantings in most producing countries, according to the International Cotton Advisory Committee(ICAC).

The global cotton production stood at 112 million bales last year. One bale is equal to 170 kg. 

"Global cotton production is expected to rise by over 12 per cent to a record of 27.4 million tonnes (126 million bales) in 2011-12. However, the projected increase in production is relatively small considering the doubling of prices experienced in 2010-11," the Washington-based ICAC said on its website.

Competition from food crops and limited natural resources including land, seeds, water and farm equipments are preventing cotton area from rising further in this year, it said.   

Consequently, world cotton area is projected to rise by seven per cent in 2011-12 to 36 million hectares, the largest in 17 years, in response to record prices last year, it said. 

The New York futures contract of cotton for March 2011 delivery rose from 77 cents per pound in August last year to a record 205 cents per pound in February, this year.  

ICAC also said that world cotton production is expected to outstrip demand of 117 million bales this year.

"Rising cotton output will feed demand this year, but high prices and competition from chemical fibres could limit growth in consumption to three per cent," it noted.  

As a result, the global ending stocks are projected to increase to 47 million bales, it added. China and India are the world's top two cotton producers. 

ICAC, which has 42 member countries, assists governments in fostering a healthy world cotton economy by providing statistics on global cotton production, consumption, trade and stocks besides identifying emerging changes in the structure of the world cotton market.