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Peruvian cotton imports outgrow production
May '12
Peru, the Latin American country known for producing one of the best quality cotton in the world, is currently importing more cotton than it grows domestically.

For nearly three decades, Peru produced around 160,000 tons of cotton on 250,000 hectares of land. The country even exported its cotton to about 50 countries. But now, the country produces only about 29,000 tons of cotton on 40,000 hectares of land, according to the National Association of Cotton Producers.

Currently, Peru exports only around 1,000 tons of cotton to Bolivia and Ecuador.

Peru's current cotton production of 29,000 tons is much less compared to its domestic demand of 120,000 tons per annum.

Around 96 percent of cotton imported by Peru comes from the US as it attracts no duty.

Land reform carried out by the Government is cited as a reason for decrease in Peruvian cotton production. However, the lifting of restrictions on imports of cotton remains the main reason for decrease in Peruvian cotton production.

Peruvian cotton failed to compete with the large inflow of inferior quality cotton at low prices, once the import restrictions were lifted. This destroyed the entire cotton-textile-garment chain in Peru.

As a result, yarn makers, fabric manufacturers and apparel producers in Peru are now dependent on imports.

Fibre2fashion News Desk - India

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