#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.

The Woolmark Company showcases Australia's commitment to India's textile industry at Bharat Tex 2026

Reinforcing more than five decades of commitment to India's wool textile and apparel industry, The Woolmark Company, alongside Austrade and the Australian High Commission, marked a strong presence at Bharat Tex 2026, one of the world's largest textile and apparel trade platforms. Through industry engagement, strategic collaborations, technical innovation and knowledge exchange, the participation underscored Australia's continued commitment to supporting the growth and transformation of India's textile ecosystem while highlighting the versatility and value of Australian Merino wool.

Rieter sees Barmag integration on track as orders and sales rise

The first half of 2026 was shaped by the successful completion of the largest acquisition in Rieter’s history. The Man-Made Fiber Division enables entry into the growth segment of man-made fibers and sustainably strengthens Rieter’s market position in the Asia region. The expanded Group is now the world’s leading system supplier for the processing of natural and man-made fibers. In the first half of the year, initial cost savings in material costs and operating expenses have already been realized. The targeted synergies are expected to amount to at least CHF 20 million by the end of the 2028 financial year. Due to the completion of the acquisition on February 2, 2026, the first half of the year for the Man-Made Fiber Division only amounts to five months.

SHIMA SEIKI brings new flat knitting technologies to FEBRATEX 2026

Leading flat knitting solutions provider SHIMA SEIKI MFG., LTD. of Wakayama, Japan, together with its Brazilian representative BRASTEMA TECNOLOGIA TEXTIL LTDA., will exhibit at the Brazilian Textile Industry Fair (FEBRATEX 2026) this month. On display will be a roundup of SHIMA SEIKI computerized flat knitting technology, represented by WHOLEGARMENT® knitting machines, computerized flat knitting machines featuring a brand-new model with high productivity and excellent cost performance, a glove knitting machine and the latest digital solutions.

Lenzing reports improved half-year results and advances strategic transformation

Despite a persistently challenging market environment in the first half of 2026, characterized by volatile energy and raw material prices, subdued global consumer demand and intensified competition from Asia, the Lenzing Group significantly improved its financial performance. Net result after tax more than doubled to EUR 35.6 million, compared with EUR 15.2 million in the first half of 2025. Free cash flow increased to EUR 45.8 million, while EBITDA amounted to EUR 239.2 million. Revenue totaled EUR 1.27 billion, compared with EUR 1.34 billion in the previous year.

Trützschler’s latest spinning and card clothing innovations at CAITME 2026

From September 8 to 10, 2026, Trützschler will present its latest innovations in spinning and card clothing for state-of-the-art fiber processing at CAITME in Tashkent, Uzbekistan. Visitors are invited to meet the experts at Pavilion 2, Booth D50 and explore solutions designed to increase productivity, streamline processes, and ensure consistently high yarn quality. Key topics include the next-generation card TC 30i, the integrated draw frame IDF 3, the high-performance comber TCO 21XL as well as Trützschler Card Clothing’s new flat top series STEELTOP®.