Cotton production for 2006-2007 is forecast at 165,000 tons, the highest of the past five years. Despite erratic weather, most producers in the cotton area are quite enthusiastic as prices were better than the past year and a great number of producers made good profits in the current crop.
However, a strong limitation to further expansion is the weak financial situation of many small and medium producers and the lack of credit availability. The adoption and expansion of new technology and management, which increases yields at the farm level and reduces harvest costs significantly, is encouraging larger producers to refocus again in cotton production.
The local cotton complex is encouraged by the reduction of cotton subsidies which the U.S. has to implement and that the WTO Doha round is paying special attention to cotton due to its economic and social importance in developing countries.
The local textile industry has been recipient of large investments in the past few years.However, practically all has been focused on improving quality, reducing costs and expanding.
United States Department of Agriculture Foreign Agricultural Service
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