Cotton: World Markets and Trade (October 2004)

October 2004 Edition:

Indian Mill Use and Production Hit Records

According to newly available USDA data, Indian mill use and production are expected to hit historic highs in MY 2004/05. Consumption is forecast at 3.0 million metric tons, up 4 percent from the previous year. Production is forecast at 3.1 million metric tons, up 3 percent from the previous year.

India is already the second largest user of cotton in the world with an average 2.9 million metric tons of mill use per year. Because of its low cost of production and economies of scale, India is expected to expand its apparel and textile industries. Experts believe that India will benefit when the current system of quotas governed by the Multi-Fiber Arrangement (MFA) is terminated. Also concerns about Chinese mill use raised by tighter credit, increasing labor and energy costs, and the threat of U.S. safeguards is making India an attractive alternative. Targeting both domestic and export markets has helped the apparel industry to grow at an annual rate of 15 to 20 percent.

India is the third largest cotton producer in the world, with an average 2.6 million metric tons production a year. With the exception of some high-quality ELS, India produces most of the cotton used by its textile industry. Better than average late-season rainfall is likely to result in favorable yields; however, the increase in production from last season is attributable to additional area. Last year's record yields and high cotton prices combined with extended monsoon rains, have encouraged Indian cotton farmers to plant more area.

World and U.S. Cotton Situation and Outlook
Marketing Years 2002/03, 2003/04 and 2004/2005
1,000 480-Lb. Bales
	World				US
	2002/03	2003/04	2004/2005	% Change 2003/04	2002/03	2003/04	2004/2005	% Change 2003/04
Production	88,329	94,513	109,670	16.00%	17,209	18,255	21,545	18.00%
Imports	30,222	34,099	31,885	-6.50%	67	45	40	-11.10%
Use	98,656	98,909	101,405	2.50%	7,273	6,489	6,100	-6.00%
Exports	30,362	33,003	31,648	-4.10%	11,900	13,759	12,300	-10.60%
Ending Stocks	36,737	33,476	41,954	25.30%	5,385	3,506	6,700	91.10%

Download the entire circular.

TABLE OF CONTENTS

Statistical tables contained in this circular may be viewed in Adobe Acrobat format ® (.pdf).

Tables

Summary of Changes (1,000 480-lb. bales) {.pdf}

Table 1: World Cotton Supply, Use and Trade, 1999/2000-2004/2005 (1,000 metric tons) {.pdf}

Table 2: World Cotton Supply, Use and Trade, 1999/2000-2004/2005 (1,000 480-lb. bales) {.pdf}

Table 3: FY 2002 GSM-102 and Supplier Credit Programs {.pdf}

Table 4: Area, Yield, and Production by Country 2003/2004-2004/2005 {.pdf}

Table 5: Cotton Supply & Distribution by Country 2004/2005 (1,000 480-lb. bales) {.pdf}

Table 5-A: Cotton Supply & Distribution by Country 2004/2005 (1,000 metric tons) {.pdf}

Table 6: Cotton Supply & Distribution by Country 2003/2004 (1,000 480-lb. bales) {.pdf}

Table 6-A: Cotton Supply & Distribution by Country, 2003/2004 (1,000 metric tons) {.pdf}

Table 7: Export Sales Summary {.pdf}

Table 8: Northern European Cotton and Adjusted World Price {.pdf}

Table 9: World Cotton Production, Yield, Supply, and Utilization {.pdf}

Table 10: United States Cotton Production, Yield, Supply, and Utilization {.pdf}

Table 11: Foreign Cotton Production, Yield, Supply, and Utilization {.pdf}

Revised Historical Data for Peru {.pdf}

Revised Historical Data for Malawi {.pdf}

Most statistical tables are available in Adobe Acrobat and Lotus version 3 format. You may need to GET the Acrobat reader.

Last modified: Tuesday, August 30, 2005