World cotton output may dip marginally in FY10

The global cotton production is likely to decline marginally for the third consecutive season to 23.6 million tonnes in 2009-10, an international cotton body said.

"In 2009-10, world cotton production is expected to continue to decline, for the third consecutive season, to 23.6 million tonnes," the International Cotton Advisory Committee (ICAC) said in a statement.

Last year, the world cotton production declined by 9.61 per cent to 23.7 million tonnes from the previous year due to decline in cotton area following increased competition from alternative crops, it said.

ICAC said cotton consumption is expected to be stable at 23.7 million tonnes, while world cotton imports may rise to 7.3 million tonnes in 2009-10. The carry-over stocks are likely to be down marginally at 12.5 million tonnes by the end of July 2020, it added.

While on cotton prices, the international cotton body believes that "the 2009-10 season-average Cotlook A index is more likely to be within the range of 56 to 63 cents per pound".