India's cotton production may be reduced to 5.4 million tons in 2012-13

After two consecutive years of record highs, India's cotton production in 2012-13 is expected to decline by 7% from 5.9 million tons in 2011-12 to 5.4 million tons.

Lower cotton prices have led to a 10% reduction in cotton plantings to 11 million hectares. However, cotton use by cotton mills in India is expected to rebound by 7% in 2012-13 to 4.7 million tons (lower prices and improved global economic growth). Prior to this, textile mill use decreased by 4% in 2011-2.

Townsend, an executive director of the International Cotton Advisory Committee (ICAC), said: “India’s exports are expected to reach 750,000 tons, a 61% year-on-year decline, as not only domestic production has been reduced, domestic textile mills have increased usage, and other countries have been fighting for it more aggressively. This smaller global export pie.