The 2020/21 cotton season was disappointing for the cotton industry globally. Covid-19 significantly affected the global supply chain and damaged the world economies. However, things are getting back to normal. According to the International Cotton Advisory Committee (ICAC), cotton production is poised for full recovery, with a 6% increase expected for 2021/22. Pakistan has been identified among key players to boost cotton production.
Current projections show an increase of 6% in global production in 2021/22 vs. the prior season, which is good news for the cotton and textile sector. Three of the world’s top five producers (Brazil, Pakistan, and the USA) are showing increases in production vs. 2020/21, and while that will not quite bring things back to ‘normal,’ it is a sign that the industry’s recovery is still in full swing. Although world cotton production is expected to increase by 6% in 2021/22, the estimate of 25.7 million tonnes is still lower than it was pre-pandemic.
The key highlights of the current update from ICAC include:
• World production is poised to show a 6% year-over-year increase vs. 2020/21
• The surge is being led by three of the world’s top five producers: the USA, Brazil, and Pakistan
• West Africa is poised to post an impressive 48% increase vs. the prior season
Nowhere is that more evident than in West Africa, where all countries report production increases, with the region being up nearly 48% vs. the 2020/21 season. The Secretariat’s current price forecast of the season-average index for 2021/22 ranges from 87 cents to 126 cents, with a midpoint at 104.26 cents per pound.
Pakistan is the fifth-largest producer of cotton in the world. It also has the third-largest cotton spinning capacity in Asia (after China and India), with thousands of ginning and spinning units producing textile products from cotton. Therefore, the upcoming season’s cotton production recovery news is expected to take Pakistan’s activities back to normal.
