Despite investments in quality and incentives to use cotton, Brazil’s cotton production is likely to decline next year due to increased input costs, says Brazilian Association of Cotton Producers (Abrapa). Brazil’s cotton cultivation may decrease in 2022-23 due to demand stagnation amid economic slowdown induced by Russia-Ukraine war, says Julio Busato, President, Abrapa.
Although cotton prices on the New York cotton exchange recently reached their highest levels in over 10 years, production costs have also grown almost 40 per cent halting early deals, he adds. If cultivation costs continue to increase, farmers should opt for more feasible crops like corn and soybeans, Busato adds.
As per official figures, the world’s second largest cotton exporter, Brazil produced three million tons of cotton in the 2019-20 season. Harvest decreased in the following cycle to 2.35 million tons due to the pandemic. However, production is returning to its historic highs in the current 2021/22 season.
