WASHINGTON, May 14: Global cotton production will decline by more than 10 percent in 2005/06, totaling just 107 million bales, although Chinese consumption will increase significantly, the US Agriculture Department said on Friday. The anticipated smaller crop is due to lower market prices, the USDA’s Foreign Agricultural Service said in a special report on the outlook for cotton.

At the same time, global consumption is expected to increase in 2005/06 to 111.5 million bales, 3 per cent above the record for the current season, the USDA said. Global income and price changes don’t appear to fully explain why cotton consumption in 2004/05 grew faster than during any year since 1950, the USDA said. Nor does the average relationship among these variables fully explain the previous four instances over the last 50 years when world cotton consumption rose by at least 6.5 per cent.

China accounts for two-thirds of the world’s 9 million bale consumption increase expected for 2004/05, the report said. China’s mill use is expected to increase 19 per cent in 2004/05 as it boosts exports of textiles. China will import about 15 million bales of cotton in 2005/06, a jump of 7 million bales, the USDA said.—Reuters