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Peru's cotton output will dip this season: SNI
Feb '13
The production of cotton in Latin American country of Peru will take a hit this season as the crop is estimated to have sown on 30 percent lesser area compared to the previous season, according to the Sociedad Nacional de Industrias (SNI or National Society of Industries).
Based on the latest statistical information provided by the Ministry of Agriculture (MINAG), the future of national cotton harvest campaign seems to be uncertain as the area under cotton cultivation has depleted by 30 percent over last year, Jose Ignacio Llosa, chairman of the Textile Committee of SNI, said.
Mr. Llosa said the situation could adversely impact the domestic textile industry, especially the export-oriented sector. He added that cotton production is very important for textile and apparel exports, which would lose their competitive advantage over suppliers from other countries in the global market.
He said the announcement of MINAG to end giving grants to cotton producers has also affected the sowing, as small farmers would not like to opt for growing cotton in the absence of Government support.
He indicated that the high level of cotton inventory worldwide indicates that cotton prices would remain low in the coming months and urged the Government to implement short-term measures like guaranteeing a minimum support price to farmers, which would cover the costs of production, as done by Colombia, China, India and other countries.

Fibre2fashion News Desk - India

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