The International Cotton Advisory Committee (ICAC) estimated world cotton production surplus of 1.7 million tonnes. By the end of the season, stocks held outside of China are forecasted to increase by 20 per cent, to nearly 9 million tonnes, the second largest volume after 2004/05 in the last 30 years. Much of this increase will be held by producing countries and will affect world exports to fall 15 per cent to 7.5 million tonnes. The reduction in China’s demand for cotton yarn imports is also expected to cause India’s cotton consumption growth to plunge 4 per cent thereby reaching to 5.3 million tonnes, down from 5 per cent in 2013/14 and 14 per cent in 2012/13 when demand for Indian yarn exports was much stronger.
