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Ugandan cotton exports set to increase: Minister
23
Apr '14
The exports of cotton from Uganda are set to rise once the recommendations made by trade ministers at the ninth ministerial conference of the World Trade Organization (WTO), held in Bali last year, are implemented, Minister of Trade, Industry and Cooperatives Amelia Kyambadde, has said, New Vision reported.
 
Addressing a meeting in Kampala city, the Minister said one of the recommendations of the trade ministers at the WTO conference was to improve market access for cotton products from least developed countries (LDCs), and also provide development assistance for cotton production in those countries.
 
Ms. Kyambadde said the ministers at the conference agreed that the cotton sector in Uganda would be supported, if possible, with a fund to improve the production capacity and quality control, so that the country can gain a guaranteed market.
 
Since Uganda is the chair for the WTO’s LDC Group this year, it would be made sure that the agreed clause on cotton from LDCs is implemented and Uganda can earn more from cotton exports, the Minister said.
 
At the Bali meeting, member countries also agreed on removing all barriers to duty and quota free import of cotton from LDCs like Uganda.
 
Uganda was a leading exporter of quality cotton until a few years ago, but its exports have dropped in recent years. In 2013, the country’s earnings from cotton exports fell by 58.6 percent to US$ 31.42 million, compared to earnings of $76 million in the previous year.
 
One of the reasons for lower production capacity as well as poor quality of Ugandan cotton is that the crop is mainly grown in areas that are not easily accessible. 
 
Only five percent of the cotton grown in Uganda is utilized domestically, and the rest of it is exported, mainly in the raw form.
 

Fibre2fashion News Desk - India


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