April 1 (Bloomberg) -- Cotton production next year will drop less than forecast a month ago, and the anticipated gain will be smaller, according to the International Cotton Advisory Committee.

Output will total 23.47 million metric tons in the year starting Aug. 1, 4 percent more than 22.56 million forecast in March, the Washington-based ICAC said today in an e-mailed statement. Production this year will be 26.01 million.

Global consumption will reach 23.71 million tons, down 70,000 tons from last monthΆs projection, though still higher than the 23.41 million estimated for the 2012-2013 season, the group said. Stockpiles on July 31, 2014, will total 16.44 million tons, or 670,000 higher than the MarchΆs estimate.

Cotton prices are up 16 percent this year on ICE Futures U.S. in New York “due to concerns about a tightening supply- demand balance outside of China,” where mills continue to build reserves, the committee said.

Midway through this season, Australia, the seventh-largest producer, surpassed both India and the U.S. as the biggest suppliers of the fiber to China, the worldΆs top consumer and importer, according to the report. The U.S. is the leading exporter.