The solution has to be found by banks, government and the Societe De Developpement des Fibres Textiles (SODEFITEX). This could result in a decrease in the area under cotton plantation.
MY 2022-23 production is forecast to rise by 13 per cent to 45,000 bales assuming average rains, low pest pressure and appropriate fertiliser use. Private industry estimates 2021-22 area to remain the same as the previous year at 18,000 ha, USDA said in its Cotton and Products Annual report.
MY 2021-22 cotton production is estimated up by 5 per cent at 40,000 bales due to an increased use of fertiliser enriched with calcium, a good crop protection programme, increase access to herbicides and the presence of technical sales advisors in the farms, allowing close supervision to producer.
As with all other West African countries, farm gate prices and input prices have not been announced yet. For many years, the Senegal’s subsidy has been applied to the farm gate price and not the fertiliser price to avoid diversion to other crops.
Senegal does not have any operating textile companies. So domestic consumption is assumed to be nil.
MY 2022-23 export is forecasted to increase by 13 per cent at 45,000 bales compared to the previous year based on available supply. MY 2021-22 exports are estimated to decrease by 11 per cent at 40,000 bales due to less available supply, a consequence of a lower ending stocks the previous year.
All the cotton fibre is exported through the Port of Dakar. In 2021, Senegal exported cotton mainly to India (92 per cent) and Turkey (6 per cent).
Stocks for MY 2022-23 are forecast at 3,000 bales, the same as the previous year in anticipation of more exportable supplies.
Private industry believes that the farm gate price may be increased from the previous year to motivate farmers to plant more cotton in MY 2022-23 despite rising fertiliser prices, the USDA report said.
ALCHEMPro News Desk (DS)
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