ICAC: India and China to Drive Global Cotton Trade Growth
According to the International Cotton Advisory Committee (ICAC), strong import demand from India and China could provide fresh momentum to global cotton trade in the 2026/27 season. The rising purchasing activity from both nations is emerging as a key force strengthening trade dynamics in the international market.
The report indicates that India has become one of the most significant drivers of global cotton demand. Cotton lint imports for the country are projected to reach approximately 1 million tonnes in the 2025/26 season—a 42% increase compared to the previous season—marking the highest import level in India's history.
Policy measures, such as temporary cuts in import duties and exemptions on Extra-Long Staple (ELS) cotton, have played a pivotal role in this surge. These steps have enhanced the availability of imported fiber and supported demand from the domestic spinning and textile industries.
A significant rebound in China's cotton imports is also anticipated. After hitting an eight-year low last season, China's cotton lint imports are projected to rise by approximately 42% in 2025/26.
The ICAC forecasts that China will reclaim its position as the world's largest cotton importer in the 2026/27 season, accounting for roughly 19% of global cotton imports. Additional import quotas, strong domestic market prices, and sustained demand from textile mills are cited as the primary drivers of this growth.
Brazil leads the list of China's key suppliers. Currently, Brazil accounts for about 52% of China's total cotton imports, establishing itself as a major supplier in the world's most significant cotton trade corridor. Meanwhile, Australia is strengthening its position as China's second-largest supplier. Meanwhile, ongoing shifts in US-China trade relations are influencing global competition and the flow of cotton trade.
Regarding production and consumption, global cotton production for the 2025/26 season is projected at 26.5 million tonnes, a 3% increase over the previous year. Global consumption is expected to reach 25.3 million tonnes, reflecting a year-on-year growth of 1.6%.
For the 2026/27 season, global cotton production is forecast to decline by 2% to 25.9 million tonnes, while consumption could rise by approximately 1% to reach 25.5 million tonnes. The ICAC believes that, driven by strong demand, India and China will play a pivotal role in shaping the direction of global cotton trade in the coming years.
