Thursday, January 11, 2007 - 2:00 PM

Why is World Cotton Area High Despite Low International Prices?

Armelle Gručre, International Cotton Advisory Committee, 1629 K Street NW, Suite 702, Washington, DC 20006

World cotton area has remained above 34 million hectares since 2004/05, in the upper range of the historical interval of 28 to 36 million hectares. However, world cotton prices in recent seasons have remained well below the long-term average of 74 cents per pound. This paper examines where in the world cotton area has remained above average in recent seasons, and looks into possible explanations at country and world levels.