Browse Data and Analysis

Estimated cotton imports for marketing year (MY) 22/23 are reduced to 1.4 million metric tons (MMT) on high carry-in stocks, higher domestic production, weak consumption, and uncertainty concerning the issuance of additional import quota. Consumption is reduced to 7.7 MMT in both MY 21/22 and MY 22/23 on restrictive zero-COVID polices and slower economic growth that has resulted in lower demand for textile and apparel products.

On November 14, 2022, China notified a revised draft for the “National Standard of the People's Republic of China (PRC) Cotton—Saw Ginned Upland Cotton” to the World Trade Organization (WTO) Technical Barriers to Trade (TBT) Committee. The PRC requested WTO members submit comments in 60 days. This standard will replace GB 1103.1 - 2012 Cotton - Part 1: Saw Ginned Upland Cotton.

Vietnam cotton imports in marketing year 2021/22 (MY21/22) decreased 9 percent year on year to roughly 1.4 million metric tons (MMT) with a 30-percent higher value at $3.5 billion, according to Vietnam Customs data.

Effective February 1, 2023, Hong Kong will ban cannabidiol (CBD) products. The newly amended regulation will prohibit the manufacture, import, export, supply, sale, possession and transshipment of any products containing CBD in the city, regardless of quantity.

Estimated cotton imports for marketing year (MY) 22/23 are reduced to 2.2 million metric tons (MMT) on high carry-in stocks and higher domestic production. MY 22/23 production is increased to 6 MMT on higher yields in Xinjiang. China’s slowing economy and weak domestic demand reduced cotton use in MY 21/22 to 8 MMT and lowered imports to 1.76 MMT.

Post forecasts consumption of cotton in the Malaysian textile industry at 290,000 bales in marketing year (MY) 2022/23, a 3.3 percent drop from the previous year post’s estimate. The expected reduction is based on textile companies shifting their operation to other South-East Asian countries as the cost of labor increased in Malaysia with the revision of new minimum wages on April 1, 2022.

The following changes have been made to the 2022 FAIRS report: 1) Section II – Labeling. Effective December 1, 2023, food containing hydrogenated oils must be labeled. 2) Section III – Packaging. Glass and plastic bottles will be subject to additional levies. 3) Section VI – Other Requirements, Regulations, and Registration Measures.

Post forecasts consumption of cotton in the Malaysian textile industry at 290,000 bales in marketing year (MY) 2022/23, a 3.3 percent drop from the previous year post’s estimate.

A recent industry survey in one of China’s leading provinces for textile and apparel manufacturing highlights the negative impact of the PRC’s zero-tolerance COVID policy in the world’s largest cotton market and area economy. According to survey results, production estimates are down, costs are higher, and deliveries are delayed.

The 2021 U.S. Agricultural Export Yearbook provides a statistical summary of U.S. agricultural commodity exports to the world.

Declining cases of COVID-19 globally and domestically are expected to increase overall demand for textile and textile products. Therefore, following an 8.2 percent decline in 2020/21, cotton imports are expected rebound by 12.7 percent to 2.6 million bales in 2021/22.

Higher downstream demand for textiles and garments and reduced cotton yarn imports are expected to raise spinning demand for cotton in marketing year (MY) 22/23, lifting cotton imports to an estimated 2.3 million metric tons (MMT).