February 22, 2013

Peru sees drop in sown cotton

Peru's cotton output will be affected this season as the crop is estimated to have sown on areas at 30% lesser compared to the previous season.

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% over last year, Jose Ignacio Llosa, chairman of the Textile Committee of SNI, said.

He said the announcement of MINAG to cease 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.