The New Nation - Internet Edition

PTI, New Delhi

The global cotton trade is likely to fall by 12 percent to 7.3 million tonnes in 2008-09, following uncertainty about the global financial crisis and tightening credit availability for spinning mills, the International Cotton Advisory Committee (ICAC) said.

A decline in world cotton imports is mainly driven by an expected 24 percent drop in imports by China (Mainland) to 1.9 million tonnes, ICAC said in a statement.

Imports by the rest of the world are also expected to decline by seven percent to 5.4 million tonnes, it said, adding that there would be a six percent fall in global cotton mill use to 24.9 million tonnes in the next year.

ICAC said lowered global economic growth for 2009, projected decline in developed economies' income, tightening credit availability for spinning mills and uncertainty regarding the consequences of the global financial crisis, are severely affecting cotton consumption worldwide.

Meanwhile, global cotton production is also expected to decrease by six percent to 24.6 million tonnes, driven by a decline in cotton area cause by increased competition from grains and oilseeds and unfavourable fluctuations in the exchange rates of many producing countries during 2007-08, it said.

In particular, production is expected to fall in the US by 30 percent to 2.9 million tonnes, while it could increase in India, Pakistan and Australia, it added. ICAC is an association of governments of cotton producing and consuming countries.