TextTable

December 2005 Edition:

Subcontinent Mill Use Hits Record; Still Below China

Indian Subcontinent (India, Pakistan, and Bangladesh) mill use is expected to reach a record 30.3 million (480-lb) bales in MY 2005/06, surpassing last year’s record by more than 10 percent. The growth in the Subcontinent mill use is above the world average (5.6 percent) and slightly less than China’s growth (11.7 percent) for MY 2005/06. The Subcontinent is already the world’s largest consumer of cotton outside China, but unlike China, is over 90 percent self-sufficient.

Domestic use for each of the three Subcontinent countries will also surpass previous records: India (16.8 million bales), Pakistan (11.8 million bales), and Bangladesh (1.8 million bales). Record domestic use is attributed both to increased domestic retail sales and exports of textile and apparel products. In addition to having some of the lowest labor costs in the world and receiving zero-duty preferential treatment from the European Union, the removal of the Multi-Fiber Arrangement has made the Subcontinent’s textile and apparel industry very competitive.

The United States is the major cotton exporter to the Subcontinent, with a market share between 10 to 47 percent over the past 5 years. However, in recent years, U.S. market share in the Subcontinent has decreased. This decrease is driven primarily by a drop in market share in Bangladesh and India, and as a result of the increased trade between Subcontinent countries. Both India and Pakistan are now exporting upland cotton to Bangladesh. India is also exporting cotton to Pakistan, as where there was virtually no cotton trade between the two countries before.

World and U.S. Cotton Situation and Outlook
Marketing Years 2003/04, 2004/2005, and 2005/06
1,000 480-Lb. Bales
	World				U.S.
	2003/04	2004/2005	2005/2006	% Change 04/05 - 05/06	2003/04	2004/2005	2005/2006	% Change 04/05 - 05/06
Production	95,262	120,407	112,285	-6.7	18,255	23,251	23,703	1.9
Imports	33,898	33,135	41,761	26.0	45	29	40	37.9
Use	98,080	108,797	114,849	5.6	6,221	6,693	6,000	-10.4
Exports	33,243	34,681	41,295	19.1	13,758	14,409	16,400	13.8
Ending Stocks	40,717	51,512	50,915	-1.2	3,506	5,538	6,900	24.9

Download Cotton Supply and Demand Database {.csv}

Download Cotton Circular {.pdf}

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}

Statistical tables are available in Adobe Acrobat. You may need to GET the Acrobat reader.

Last modified: Tuesday, August 30, 2005