#Natural Fibers

2026-07-02

Global cotton trade poised for recovery as India and China drive import demand

The July 2026 issue of Cotton This Month highlights a changing global cotton market, with consumption and trade expected to strengthen despite a modest decline in production during the 2026/27 season. The next issue of Cotton This Month will be released on August 1, 2026.

According to the report, global cotton production for the 2025/26 season is estimated at 26.5 million tonnes, up 3% from the previous season, while consumption is projected to reach 25.3 million tonnes, an increase of 1.6%. Looking ahead to 2026/27, global production is forecast to decline slightly by 2% to 25.9 million tonnes, while consumption is expected to continue growing, rising approximately 1% to 25.5 million tonnes. Global cotton trade is projected to increase by 2.6% to 9.6 million tonnes.

The report identifies several key trends shaping the market:

Improving global demand for cotton consumption despite tighter production prospects.

Continued pressure on cotton acreage as growers respond to weaker profitability, rising production costs, and competition from alternative crops.

Climate-related challenges, including heat, unreliable rainfall, and increasing pest pressures, which continue to affect production decisions.

A significant shift in global import demand, led by India and a recovering Chinese market.

India emerges as a major demand center

India has become one of the most important drivers of global cotton demand. Cotton lint imports are projected to reach approximately 1 million tonnes in the 2025/26 season, a 42% increase over the previous season and the highest level ever recorded by the country.

The surge follows a series of policy changes, including temporary reductions in import duties and exemptions for extra-long staple cotton, which improved access to imported fiber and supported domestic consumption growth.

China’s cotton imports recover

China is expected to regain its position as the world’s largest cotton importer during the 2026/27 season, accounting for an estimated 19% of global imports.

Following an eight-year low in imports during the previous season, China’s cotton lint imports are projected to increase by approximately 42% in 2025/26, supported by additional import quotas, higher domestic cotton prices, and the need to sustain consumption levels.

Changing trade relationships

Brazil has consolidated its position as China’s largest cotton supplier, accounting for approximately 52% of China’s cotton imports during the current season. Australia has emerged as China’s second-largest supplier, while U.S.-China trade policies continue to influence global cotton trade flows and competitiveness.

The report also examines the implications of recent policy developments, including China’s suspension of tariffs introduced since March 2025 and new commitments to purchase U.S. agricultural products.

US cotton policy initiatives

The July issue highlights the launch of the Great American Cotton Plan by the U.S. Department of Agriculture. The initiative aims to increase domestic demand for American-grown cotton and cotton products, strengthen the cotton value chain, and improve returns for growers.

The plan includes the “Plant Not Plastic” initiative, which promotes cotton-based products as sustainable alternatives to synthetic fibers, as well as support for the proposed Buying American Cotton Act.

ICAC’s price projections

Based on current supply and demand projections, the Secretariat forecasts the Cotlook A Index for the 2026/27 season to range between 66 and 85 cents per pound, with a midpoint of 75.7 cents per pound.

ICAC’s statistical data portal

For the most current statistics, users are encouraged to consult ICAC’s Statistical Data Portal, which is updated continuously throughout the month.

The author of Cotton This Month is Parkhi Vats, Principal Statistician & Data Architect at ICAC.

To subscribe to Cotton This Month, please click here:

https://icac.org/publications/cotton-this-month

Organic cotton at the crossroads: Ideology, evidence, and the road ahead

Organic cotton occupies one of the most contentious spaces in global agriculture. While praised by brands and consumers for its environmental ideals, it also faces persistent questions about yield stability, certification integrity, and scalability. The current edition of The ICAC Recorder cuts through the ideology to deliver a rigorous, evidence-based assessment of both sides of the debate.

Dr N Vigneshwaran is named 2026 ICAC Researcher of the Year

The International Cotton Advisory Committee (ICAC) is pleased to announce the selection of Dr N Vigneshwaran, Principal Scientist and Head of the Chemical and Biochemical Processing Division at the ICAR–Central Institute for Research on Cotton Technology (ICAR-CIRCOT), Mumbai, India, as the ICAC Researcher of the Year 2026.

Cotton made in Africa partners receive top marks in independent verifications

Cotton made in Africa® (CmiA) and CmiA Organic are two internationally recognised standards that aim to promote sustainable development in the African cotton sector south of the Sahara. To ensure the standards’ credibility among brands, retailers, and consumers, independent verifiers evaluate compliance on the ground. The verification results for 2025, now published in the Aggregated Verification & Implementation Report, were very strong: The verifiers awarded consistently very good remarks regarding management, people, prosperity, and the environment.

Cotton ConneXions Insight to Impact brings supply chain leaders together around cotton innovation

Cotton Incorporated’s Cotton ConneXions Insight to Impact brought together more than 300 industry leaders from 140 companies across 10 countries, including more than 45 top global brands and sourcing organizations, underscoring strong global interest in cotton-rich product development, sourcing and supply chain collaboration.

JEC Forum Southeast Asia 2026 highlights Taiwan as a strategic hub for the global composites industry

The third edition of JEC Forum organized in Southeast Asia brought together 350+ participants from 22 countries for three active days of high-level Business Meetings, conferences, and networking, emphasizing Southeast Asia’s growing role in the global composites market. Held for the first time in Taipei from 23 to 24 June 2026, following the successful first editions in Bangkok, JEC Forum Southeast Asia 2026 confirmed its position as the region’s leading business platform dedicated to the composites industry.

Sustainability: European industry calls on EU to keep Single-Use Plastics Directive unchanged

A broad coalition of European industry associations, including EDANA, Euratex and Plastics Europe, has urged EU institutions to maintain the current legal framework of the Single-Use Plastics Directive (SUPD). In a joint statement, the organisations argue that reopening the Directive at this stage would create legal uncertainty, increase regulatory complexity and undermine investment, while its implementation across the European Union is still incomplete.