China Cotton: Production Big, Demand Bigger
9 October 2006 China’s cotton production for 2006 is expected to grow to 6.35 million metric tons (MMT), which would still require 4.4 MMT of imports due to the rapid growth of the country’s textile industry.
The US Department of Agriculture’s Foreign Agriculture Service (USDA-FAS) reports that increased planted area and improved yield are responsible for the boost in production, which would break the record of 6.32 MMT in 2004, as recorded by the Chinese National Statistics Bureau (NSB). The cotton planted area in China is up 6.25% over 2005 to approximately 5.4 million hectares (Ha).
However, the growth in production of Chinese cotton is far eclipsed by the country’s expanding textile industry demand. Cotton consumption for 2006/07 is forecast to exceed 10.5 MMT. According to monthly yarn data released by China Cotton Information Center (cncotton.com), total yarn production for the 2005/06 marketing year (September to August) reached 16.04 MMT. This forecast is 22.34% higher than 2004/05 (13.11 MMT). Cotton consumption for MY 2005/06 is estimated at more than 10 MMT.
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