USDA sees global cotton output down by 10%

Global cotton production is expected to decline by 10 per cent in 2005-06 (July-June), according to a United States Department of Agriculture report released late Sunday.

The estimated decline is on account of reduced area under cultivation stemming from lower prices, the report said.

The cropping year for cotton in India starts in October while its marketing year in the US begins in July.

Global cotton output is estimated at 107 million bales (1 bale=170 kgs) in 2005-06, according to the USDA report.

However, cotton consumption is seen at 111.5 million bales, higher by three per cent than the current year's estimate, USDA said.

According to the report, the consumption growth would occur outside the US as American mill use is expected to decline further.

With global consumption set to exceed production, closing stock for 2005-06 is projected at 45.2 million bales, 4 million bales below the current year, the report said.

The USDA report said world cotton prices have fallen 26 per cent in the first three quarters of the current marketing year.