The total production is expected to be 124 million bales in 2008-09 as against 118 million bales in 2007-08, an ICAC report said, adding that the five largest cotton producing countries of the world -- China (Mainland), India, Pakistan, the US and Uzbekistan -- share about three-fourth of the world total production.

The acreage under cotton is projected to remain same as that in the last season at 34 million hectares. During 2007-08, the world cotton area declined by about two per cent due to lower area under cotton in the US.

The report noted that the consumption of cotton is expected to increase eroding the world cotton stocks in 2008-09.

The global consumption is forecast at 126 million bales in 2008-09, one per cent higher than in 2007-08, but exceeding production.

The agency has forecast a firm trend in the world cotton prices during 2008-09 season mainly on account of a decline in the stocks-to-mill use ratio in the world minus China.