The US Department of Agriculture (USDA) has projected a rebound in global cotton mill use from August onwards this year.
The cotton consumption in 2019/20 period (August to July) fell drastically by 15 per cent and the fall can be attributed to the second half of the period due to economic slowdown caused by COVID-19 outbreak.
The fall noted in 2019/20 period was the worst in last 16 years.
According to USDA, the global cotton consumption in August-July period in 2020/21 period is projected to increase by 11.30 per cent to 114.30 million bales as against 102.40 million bales in August-July period of 2019/20.
The use of cotton mills (raw cotton spinning mills) is also predicted to grow in China and India, which will collectively account for 52 per cent of the world total.
As per the prediction of USDA, the cotton mill output in China will be 37.0 million bales in the review period of 2020/21 which is 12 per cent (4 million bales) higher than 2019/20. However this output is still 2.5 million lower than the output given in 2018/19.
On the other hand, India will account for 23 million bales cotton output from its mills in 2020/21 which is 15 per cent (3 million bales) greater than the output generated in 2019/20. But this expected output is still 1 million bales lower than that of received output in 2018/19.
Pakistan, another leading cotton producing country, is forecast to produce 10.3 million bales cotton in 2020/21 which will be 1.3 million bales (around 14 per cent) greater than the output received in 2019/20.
Other major spinners such as Bangladesh, Turkey and Vietnam are said to see a collective surge of 2 million bales in 2020/21 over 2019/21, clocking 7.0 million bales; 6.9 million bales and 6.8 million bales, in their respective outputs.