India is expected to maintain the world’s largest cotton area at approximately 11.8 million hectares. Cotton Production is projected to increase by 8% due to normal monsoon forecasts.
The additional output is expected to be absorbed by growing domestic consumption and strong yarn exports to China according to The International Cotton Advisory Committee (ICAC) in its latest Cotton This Month report, according to the latest Cotton This Month report published by the International Cotton Advisory Committee (ICAC).
According to the report, the global cotton area is expected to decrease by 1% to approximately 30.1 million hectares, while worldwide cotton production is forecast to decline by 2% to 25.7 million tonnes and global cotton trade is also projected to contract by 1.4%, reaching around 9.5 million tonnes, according to The International Cotton Advisory Committee (ICAC) in its latest Cotton This Month report.
The ICAC report states that the weaker outlook reflects a combination of rising production costs, changing cultivation strategies, and adverse weather conditions across major producing countries.
The report also highlighted the cotton protection scenario in four of the world’s largest cotton producers, including China, the United States, Brazil, and Australia.
China is expected to remain the world’s largest cotton producer despite a 4% decline in output to 7 million tonnes. Meanwhile, US cotton planted area is projected to fall by 6% to 2.9 million hectares, reducing production by 4% to 2.8 million tonnes, the lowest level in three seasons.
In Brazil, cotton area is projected to contract by 6% to 2 million hectares following four consecutive seasons of expansion. Consequently, cotton production is expected to decline by 10% to 3.8 million tonnes.
Similarly, Australia is forecast to witness a 10% decline in both cotton area and production, bringing total output to approximately 937,000 tonnes. The downturn is primarily attributed to extreme dryness, limited irrigation water availability, and elevated input costs.
ICAC’s Secretariat currently forecasts the Cotlook A Index for the 2025/26 season within a range of 75 to 80 cents per pound, with a midpoint estimate of 78 % pound. The forecast reflects current global supply and demand expectations.
