Cotton Circular - August 2006

Aug 2006 Edition:

India Cotton Exports Surge; Growth Mainly to China

The forecasts for Indian’s cotton exports for marketing years 2005/06 and 2006/07 were raised significantly in August. Exports in 2005/06 were raised 750,000 bales to 3.25 million bales and the 2006/07 exports were revised up 250,000 bales, to 4.25 million bales. Increasing exports to China supported the large increase in India’s trade. Chinese imports of Indian cotton surged from a total 210,000 bales in marketing year 2004/05, to 2.25 million bales through June of 2005/06. Every month since December 2005, India has been China’s second leading supplier of cotton, behind the United States and surpassing Uzbekistan. India’s exports to other markets, including Taiwan, Thailand and Turkey, have also shown a significant increase in recent months.

Much of the growth in India’s cotton trade can be attributed to increased cotton production in the latest three crops. Average production in 2004/05- 2006/07 is estimated 60 percent above the average of the three previous years. The increase in production is due largely to higher yields, due to better cultural practices including a dramatic increase in Bt cotton acreage. Higher yields have supported grower returns compared to alternative crops and helped boost area.

The dramatic increase in production has outpaced India’s rapid consumption growth, which has averaged 5 percent annually since 2001/02. This has led to the shift of India being the second largest importer in 2001/02 to the second largest exporter in 2006/07. Despite large exportable supplies, India will continue to import longer-staple and higher quality medium-staple lengths. The U.S. is the leading supplier of India’s cotton imports, which are forecast to reach 500,000 bales in 2006/07.

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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, 2001/2002-2006/2007 (1,000 metric tons) {.pdf}

Table 2: World Cotton Supply, Use and Trade, 2001/2002-2006/2007 (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 2005/2006-2006/2007 {.pdf}

Table 5: Cotton Supply & Distribution by Country 2006/2007 (1,000 480-lb. bales) {.pdf}

Table 5-A: Cotton Supply & Distribution by Country 2006/2007 (1,000 metric tons) {.pdf}

Table 6: Cotton Supply & Distribution by Country 2005/2006 (1,000 480-lb. bales) {.pdf}

Table 6-A: Cotton Supply & Distribution by Country, 2005/2006 (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