If weather conditions remain favorable, Brazil should harvest 2.86 million tons of cotton (plume) in the 2019/2020 harvest, maintaining producers' expectations in January. The total that goes to the international industry should be 1.95 million tons by July, a reduction in relation to the 2.05 million tons predicted, but still a historic record. During this period, the planted area in the ten producing states totaled 1.6 million hectares.
The numbers were presented this Wednesday (29), during the 58th Meeting of the Cotton and Derivatives Sector Chamber of the Ministry of Agriculture, Livestock and Supply (Mapa), the second of the year, held, for the first time, via the internet.
“We face challenges the size of a harvest of almost three million tons, but the biggest ones will be for the next one. There is still no clear estimate on the area contraction, but it is certain that it will happen, with the prospect of a global reduction in demand for cotton, low oil prices, which favor synthetic fibers, and trade in the domestic market, practically, stopped in recent months”, explains Milton Garbugio, president of the Brazilian Association of Cotton Producers (Abrapa) and also of the Chamber.
According to Garbugio, Abrapa is arguing with the Federal Government to improve mechanisms to minimize the impacts of the pandemic on the production chain. Among them, the adjustment of the minimum price. The Association defends a value of R$ 91.97 per arroba of cotton, against the current R$ 72/arroba. The index is the reference for government credit and marketing support programs. Even with the adjustment, the minimum price would still be below the market value. Furthermore, the calculation is based on a national average of costs, which makes it even more distant from the needs of states where it is more expensive to produce cotton, such as Bahia.
Source: DATA
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