Despite global cotton stocks that could be the tightest of the past decade, almost no net growth is expected in world cotton production in 2007/08. India's output is expected to increase by another 1 million bales, while the world's no. 2 producer, the U.S., expects a 2.8 million-bale decline. These two trends would decisively move India ahead of the U.S. to become the world's second largest cotton producer.
Pakistan and Syria are also expected to increase production by a combined total of about 1 million bales. No change is expected in output by the world's largest cotton producer, China, but the volume of unaccounted cotton there is expected to increase by 1 million bales, increasing the availability of domestic cotton in the country.   
A report by the U.S. Department of Agriculture's Economic Research Service (USDA-ERS) estimates world cotton stocks will be down 40% compared to production in 2007/08. Growth in world cotton consumption is expected to slow slightly in 2007/08. Consumption grew 5.5% in 2006-07, and annual growth averaged 5.3% between 1996 and 2006. A 4% increase is expected in 2007/08, which is largely due to increased mill use in China. An 8% increase is forecast for China, or 4 million bales. Outside of China, total consumption is forecast to grow only 1.2%.

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