The price of cotton has risen more than 70% so far this year, as a result of lower production, a situation that profoundly affects the textile industry.
India, a major producer of cotton and textile products, imposed in April restrictions on cotton exports, which contributed to increase the price for textile producers from other countries.
Textile business associations in Nicaragua, Honduras, El Salvador, Costa Rica, Guatemala, Colombia, Dominican Republic, Brazil and Peru came together to demand that their governments take action against the restrictions imposed by India, characterizing them as illegal.
In a letter dated November 18th, this group reported that since India put in place these measures, the price of cotton increased 126% and that "differential is clearly designed to allow India to grab market share in textiles and apparel during a time of reduced worldwide supply of cotton ... India is withholding between 1.5 [million] and 3.5 million bales of cotton from the export market in order to benefit its domestic industry".
In December, the price index registered a decline of 1% compared to November, resulting in the largest decrease in the prices of meat, dairy and grain products being offset by increases in sugar and vegetable oils.
From the press release by the Food and Agriculture Organization of the UN:
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