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Mexico yet to address unsold cotton issue
31
Dec '11
Mexico's Ministry of Economy has not yet responded to the plea of the cotton cultivators of Laguna region, who urged the Government to help them in marketing and sale of about 200,000 bales of cotton lying with them.

The region's MP Juan Gonzalez Gonzalez said December was a very difficult month for cotton farmers and many of them did not have money to buy dinner or toys for their children during Christmas.

The farmers are actually affected by the decision of textile producers to import cotton from the US. Mr. Gonzalez said the textile manufacturers in Mexico procured cotton from the US at US$ 0.20 per bushel while several bales of cotton continue to lie unsold in the country's ginneries.

The problem becomes intense as the Government does not provide any subsidy for cultivation of cotton.

In addition, the Government has removed tariffs on imported yarns and fabrics that originate from China. This has also affected the cotton growers.

Fibre2fashion News Desk - India


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