Home / Knowledge / News / Textiles / Cotton production in São Paulo impacted by dry weather
Cotton production in São Paulo impacted by dry weather
20
Mar '12
On March 9, India announced that the halt of cotton exports was reviewed – on March 2, the Indian government announced an entire halt of shipments – to aim at the domestic market.

Agents of the producing sector claim that they might have problems with domestic market players, therefore, the Indian government conceded and announced that exports are allowed, but only for the product traded until March 4. If the halt of all exports continues, agents expect price increases.

At the beginning of March, the announcement of the halt led international prices to soar. At some moments, the international increase pushed up values in the Brazilian market. The announcement, on balance, reduced liquidity in Brazil, which was observed in the international scenario as well.

Despite the fact that the supply is surpassing the demand in the world terms in the 2012/13 season, the Indian export restriction would leave only a few options for importers.

According to the USDA, players expect exports to total 1.7 million cotton tons in the 2011/12 crop. Without the Indian share, only Brazil and Australia would be in a position to increase shipments, but they would total between 450 and 500 thousand tons, way below the necessary to meet the demand of India.

The solution may be a decrease of China's imports forecast to 4 million tons this season.

Between Feb. 29 and March 15, the CEPEA/ESALQ Index for cotton type 41-4 (delivered in São Paulo city, payment in 8 days) dropped 3.04%, closing at 1.5793 real or 0.8784 dollar per pound on March. 15.

As for the supply and demand in Brazil, data from Conab released on March 8, indicated that the planted area in the 2011/12 crop may be 0.2% higher than the previous, totaling 1.4 million hectares. The Brazilian production might amount 2 million tons, volume 2.1% more than that in the 2010/11 crop.

As for cotton crops, the lack of rains remained affecting the development of part of crops in the north of Minas Gerais state, in the Triângulo Mineiro region and in the western region of Bahia. In São Paulo, there will be losses in the production because of the dry weather.

Center for Advanced Studies on Applied Economics (CEPEA) is a research center of the University of São Paulo located at ESALQ in Piracicaba, State of São Paulo.

Center for Advanced Studies on Applied Economics (CEPEA)


Must ReadView All

Building of Ethiopian textile unit by Chinese firm starts

Textiles | On 22nd Jan 2018

Building of Ethiopian textile unit by Chinese firm starts

Chinese firm Wuxi No. 1 Cotton Mill will build a textile plant in...

India’s silk board chief stresses need to boost production

Textiles | On 22nd Jan 2018

India’s silk board chief stresses need to boost production

Silk production in India needs to be increased as inadequate...

Kenya AGOA aims doubling 2016 exports value to US by 2025

Apparel/Garments | On 22nd Jan 2018

Kenya AGOA aims doubling 2016 exports value to US by 2025

The United States Agency for International Development (USAID) Hub in ...

Interviews View All

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Urmil Arya

Sushila International, a well established textile organisation established ...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search