Dhaka, Bangladesh (BBN) – Even plummeting prices aren’t enough to offset Covid-19’s impact on global cotton consumption — but the situation could improve quickly, assuming the world gets the pandemic under control.
The price projection for the year-end 2020/21 average of the ‘A Index’ is 62.8 cents per pound this month, according to the International Cotton Advisory Committee (ICAC)’s latest update.
The current 2020/21 cotton consumption forecast is 23.9 million tonnes, representing a 5.0 per cent increase from the previous season.
Cotton production for 2020/21, on the other hand, is projected to move in the opposite direction, posting a 5.0 per cent decrease to 24.8 million tonnes largely due to 2.0 million hectare decrease in global area.
Cotton consumption is expected to recover in 2020/21 if global economic growth recovers as consumer demand increases, but as always it will continue to face stiff competition from synthetic fibres.