Cotton production and consumption will increase in 2011/12

The United States Department of Agriculture (USDA) for the first time predicted the outlook for world cotton production and consumption in 2011/12, and production is expected to exceed consumption for the first time in 7 years. Global production is expected to expand to approximately 125 million bales, a record high, which is an increase of 10 million bales compared to 2010/11.

The growth rate in 2011/12 is close to 9%, and the output is expected to increase by about 12 million bales from the average output in five years. Most of the major cotton-producing countries will increase their cotton production in 2011/12, led by India, China and Pakistan.

World cotton consumption is expected to reach 119.5 million bales in 2011/12, an increase of 3 million bales from 2010/11, the largest consumption since 2007/08.

Growth is similar to the long-term average growth rate. The improvement of global economic conditions, the demand for cotton products in developing countries, and the expected harvest are expected to provide support for the expansion of cotton consumption. Cotton mill use in major cotton-consuming countries in 2011/12 is expected to increase, with China and India headed.