High Prices of Cotton, Textiles and India

In times of low cotton production, the Latin American textile industry protests against restrictions imposed on exports from India.

Wednesday, November 24, 2010

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".

More on this topic

Commodities Projections for 2018

October 2017

The World Bank projects that the price of a barrel of oil will rise to $56, metal prices will stabilize, gold prices will tend to rise and agricultural prices will increase, due to a decline in supply.

From a report by the World Bank:

WASHINGTON, October 26 - Oil prices are forecast to rise to $56 a barrel in 2018 from $53 this year as a result of steadily growing demand, agreed production cuts among oil exporters and stabilizing U.S. shale oil production, while the surge in metals prices is expected to level off next year, the World Bank said on Thursday.

Global Food Prices - August 2017

September 2017

In August, the FAO food price index fell by 1.3% compared to July, due to lower prices for cereals, sugar and meat, which offset increases in dairy and vegetable oils.

From a report by the FAO:

The FAO Food Price Index* (FFPI) averaged 176.6 points in August 2017, down 2.3 points (1.3 percent) from July, but still 10 points (6 percent) above its value a year earlier.

Nicaraguan Textiles Lead in Central America

July 2011

Between January and May sales grew by 25% compared to the same period in 2010.

The rise in sales to the U.S. was higher than to countries like El Salvador, Honduras and Guatemala, which increased by 19%, 17% and 13% respectively in the same period.

With the 25% increase, Nicaraguan exports went up from $381.1 million to $476.7 million.

El Salvador: Textile Industry Worried by Increase in Price of Raw Materials

January 2011

The increase in the price of key raw materials and inputs for production can hardly be absorbed by companies.

Edwin Zamora, president of the Chamber of Industry and Textile (CAMTEX), added that they have no choice but to pass on the increases to costs.

"The union said that despite the rise in prices, El Salvador will not lose competitiveness against its biggest buyer: USA.

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