Cotton is one of agricultural products where production and consumption is more or less global in extent. Cotton is growing including Ethiopia, in more than 70 countries, where many developed and developing countries depend on import of lint for their spinning/textile industry.
The major cotton producers are located in the developed world, where USA is by far the largest producer, followed by China, India, Pakistan, Uzbekistan and West African countries.
Cotton is a multipurpose crop cultivated for its highly valuable textile fiber (lint). Textiles made of cotton lint are strong, comfortable, washable and printable.Beside these, there are various reasons that led to accelerated increase in cotton consumption. One reason is related to boosted world demand for clothing that further led to increased cotton demand in the world. Clothing consumption, being a primary consumer good, is highly responsive to income, making demand extremely elastic for the short run change in income. As income grows however clothing consumption grows more slowly than income on average.
This makes clothing and hence cotton to be consumed relatively higher by developing countries than developed countries. Rising income together with falling clothing prices that is further derived from falling fiber prices has also resulted in increased consumption of fiber. Compared to other competing fiber types in the market, cotton is now gaining its market share due in part to shifting global price trends after loosing its ground to polyester and other synthetic fibers for many years.
