Global Cotton Production to rise by 3%:USDA

The following worldwide season (August 2022–July 2023) is expected to see a 3.3 per cent increase in cotton production, while consumption and global commerce may stagnate or barely increase slightly, according to the US Department of Agriculture (USDA).

According to the report, this is due to lower consumption in China, Bangladesh, and Vietnam.

Global consumption prospects have deteriorated as negative macroeconomic dynamics reduce consumer demand for commodities while rising prices and increased service demand are also present.

In its most recent "World Markets and Trade" outlook, the USDA noted that both the International Monetary Fund and other financial institutions "have recently reduced their global economic outlooks relative to expectations from earlier this year.

Along with growing inflation and global interest rate hikes, it stated a number of other issues, such as the recent price surge of cotton, high container rates, and restricted availability, as well as recent Federal Reserve measures, can also be blamed for lower consumption forecasts.

Cotton is grown around the world and is typically harvested by machines but is sometimes picked by hand. Nearly 25 million tonnes of cotton are produced worldwide annually. From August 2019 to July 2020, the global cotton consumption fell by 15 percent as a result of the COVID-19 pandemic.

Producing 3,500 thousand metric tonnes a year, China is one of the world’s largest cotton producers. China’s cotton industry employs 10 million people and in the 24 provinces that produce the plant, 300 million are involved in its production.