Global cotton reserves to decline to a 15-year low in 2026-27: USDA

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Global textile manufacturing faces acute cost pressures as international cotton reserves are projected to drop to a 15-year low during the 2026/27 season. As per United States Department of Agriculture (USDA) data, world ending stocks are expected to fall by 7 per cent to 69.9 million bales, driven by an unprecedented difference between slowing agricultural output and rising mill consumption. While global production will decline by 4 per cent to 117.3 million bales, worldwide mill usage for fiber and yarn processing is forecast to increase by 1.5 per cent to 122.9 million bales, creating the widest consumption-output deficit since the 2020/21 marketing year.

Falling inventory threatens operating margins across spinning mills and fabric weaving units. Spinning mills are already absorbing higher raw material costs, and shrinking global stockpiles will severely restrict our ability to quote competitive long-term prices to apparel buyers, explains Arvind Mehta, President, Federation of Indian Textile Processors.

Analysts warn, sustained supply constraints will force garment manufacturers to pass the higher input costs to global retail markets, potentially dampening consumer demand for ready-made apparel.