T cotton Sector at a Glance

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As with production, China and India are the top two users of raw cotton. However, China is by far the 
world’s leader in processing raw cotton fiber into textiles and apparel. While shifts in Government 
policy and industry have kept consumption below its peak in the mid-2000s, China still accounts for 
one-third of global cotton mill use. 
India’s cotton consumption is second globally, accounting for about 20 percent of the total, while 
Pakistan contributes another 9 percent; however, both countries’ share remains relatively stable. In 

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contrast, upward trends in cotton consumption have occurred in Bangladesh and Vietnam, where 
companies are shifting their manufacturing to countries with relatively cheap labor, thereby increasing 
their demand for and consumption of raw cotton fiber. Turkey’s cotton mill use has also grown 
modestly. 
 
Figure 5: Leading cotton mill users, 2010-20 
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Global Trade 
Cotton is a global commodity, with robust trading in raw and finished products. Much of the world’s 
cotton crosses international borders before finally arriving at its end-use destination, and factors that 
affect trade and marketing of cotton have far-reaching impacts. 
Since China joined the World Trade Organization (WTO) in 2001, textile manufacturing has been a 
core component of its economic development. Beginning in MY 2010, the Chinese government built 
strategic stockpiles of cotton to protect its textile industry. This, among other policies, generated a 
massive demand for foreign cotton, and China became the world's dominant cotton importer. However, 
China began to phase out these measures in MY 2014 and sell off its stockpile, bringing import levels 
in line with other countries. In addition to China, the top importers include Bangladesh and Vietnam, 
where cotton textile and apparel manufacturing has expanded.