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ICAC holds world cotton production at 26 MT, consumption at 25.7 MT

The International Cotton Advisory Committee (ICAC) has projected that world cotton production and consumption will remain steady in 2025–26, according to its July 2025 report. Global cotton production and consumption are forecast to reach approximately 26 million tonnes (MT) and 25.7 million tonnes, respectively, while cotton trade is expected to rebound to 9.7 million tonnes. In 2024–25, global production and consumption stood at 25.687 million tonnes and 25.526 million tonnes, respectively. ICAC projects steady global cotton production and consumption in 2025â€'26 at around 26 million tonnes and 25.7 million tonnes, respectively. Trade is expected to rebound to 9.65 million tonnes. Production gains in Brazil, US and West Africa may be offset by a decline in China. Consumption faces pressure from tariffs and competition. The A Index price forecast ranges between 56â€'95 cents per pound. Regionally, the ICAC has revised production estimates upward for Brazil, the US, and West Africa. However, these gains are likely to be offset by a slight decline in China's output in 2025–26. Following record yields of 2,257 kg/ha—the highest ever recorded—the ICAC projects that China will produce around 6.3 million tonnes, slightly less than the current season but still the highest globally. World cotton consumption is expected to remain under pressure due to anticipated tariff hikes, regulatory challenges, and competition from other fibres. Global cotton trade is projected to rise by 2 per cent to 9.65 million tonnes, driven by increased stock levels from the current season and projected mill demand. However, trade agreements and tariffs could influence next season's trade outlook. Regarding prices, the ICAC stated that the average A Index for the 2024–25 season is forecast at 81 cents per pound. For 2025–26, the preliminary forecast—based on current supply and demand estimates—ranges from 56 to 95 cents per pound, with a midpoint of 73 cents. Fibre2Fashion News Desk (KUL)