Brazil's cotton business expected to strengthen in MY 2021-22: TexPro

The yield is expected to reach 1,800 kg per ha as compared to the current season yield of 1,745 kg per ha. The anticipated yield is due to the adoption of Genetically Engineered (GE) seeds, chemicals and fertilisers. The cotton production of Brazil was 13.78 million 480 lb bales in MY 2019-20, which declined by 15.97 per cent to reach 11.58 million 480 lb bales in MY 2020-21. It is expected to record a surge of 14.25 per cent over the cotton production in the previous marketing year to touch 13.23 million 480 lb bales in MY 2021-22, according to TexPro. 

Cotton exports of the country increased from 8.94 million 480 lb bales in MY 2019-20 to 11 million 480 lb bales in MY 2020-21, rising by 23.04 per cent. They are expected to rise further by 4.55 per cent to 11.50 million 480 lb bales in MY 2021-22 over the exports in MY 2020-21. The increase is supported by the expected pickup in the global economy, and subsequently global cotton demand as the world recovers from the COVID-19 pandemic. 

Total domestic cotton consumption of the country was 2.70 million 480 lb bales in MY 2019-20. It showed a considerable growth in MY 2020-21 to reach 3 million 480 lb bales. It is further anticipated to grow by 6.67 per cent to reach 3.20 million 480 lb bales in MY 2021-22 over the consumption in MY 2020-21. 

The Brazilian Textile Industry Association (ABIT) has anticipated a recovery in domestic processing and manufacturing based on the expectation of GDP growth of approximately 4 per cent year-on-year. 

Fibre2Fashion News Desk (KD)