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Low purchase prices may adversely affect Turkish cotton production

TopicalLow purchase prices may adversely affect Turkish cotton production

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Türkiye expects to obtain 2 million 750 thousand tons of cotton unseed and 1 million tons of fibre this year by increasing its cotton cultivation area. Cotton, a strategic product both in the country and in the world, maintains an important position in the country’s economy by providing raw materials to nearly thirty industries with its main and by-products. On the other hand, it is stated that low cotton purchase prices are not able to meet the demands of the producers in the face of increasing costs and this situation may adversely affect the producers in cultivation next season.

Türkiye expects 2 million 750 thousand tons of cotton yields this year

National Cotton Council (UPK) Research and Advisory Board Member Prof. Dr Cafer Mart told Anadolu Agency (AA) that the cultivation area of cotton, which is a very strategic product, has increased this year. Stating that every element of cotton, from its fibre to its seed, is a raw material for different sectors, Mart said: “2.25 million tons of cotton unseed were obtained from the product planted on 432 thousand hectares of land across the country last year. Around 550 thousand hectares of cultivation area has been used this year and we expect 2 million 750 thousand tons of cotton unseed from here. This corresponds to 1 million tons of fibre. Cotton is used as a raw material in nearly 30 industries. It makes a serious contribution to the economy, especially in the production of oil, seed, pulp, gunpowder and textiles.”

Mart, noting that important studies have been carried out for the development of cotton, which is a raw material for various sectors, and to increase the variety of seeds; stated that 8 local seed varieties have been developed with the studies carried out at the Progen Tohum R&D Station in Hatay, and that 10 thousand tons of seeds produced here annually are sold to the country and abroad. Mart expressed that the demand for domestic seeds is very high and disclosed: “We export seeds to countries such as Greece, Spain, Azerbaijan, Kyrgyzstan and Tajikistan and the demand is increasing every year.” Mart added that they continue to work to increase the quality and cultivation area of cotton, of which every element is important.

Low purchase prices may adversely affect Turkish cotton production

Aegean Region cotton yield forecast for the 2022-2023 season is 221 thousand tons

Making a statement on the Aegean Region yield forecast results for the 2022-2023 season, İzmir Commodity Exchange Board of Directors Treasurer Bülent Uçar noted that the cotton cultivation areas in the region are estimated to have increased by 28 percent compared to the previous season, to 119 thousand decares. Uçak disclosed that the cotton yield is expected to be 221 thousand tons. Uçak, indicating that the average seed cotton crop is expected to be 463 kilograms per decare, said: “Accordingly, we predict that the cotton unseed production will be 552 thousand tons. It is estimated that the ginning crop rate will be 40 percent in the new season and with this rate, the stable cotton production is expected to be 221 thousand tons.”

“The producer may sour on cotton and not plant next season if it continues like this”

Bülent Uçar, evaluating the cotton industry, pointed out that the world cotton market had an active period last season and stated that the increasing costs due to the effects of the global crises caused disruptions in the supply chain. Expressing that they heard that the orders for the last season were not delivered due to the difficulties in determining the price, Uçar said:

“The cotton price, which was 19 TL per kilogram at the beginning of the season, went up to 61-63 TL ranges. These days, prices have dropped to the level of 40 lira. We see that these prices do not meet the expectations of the producer. The producer may sour on cotton and not plant next season if it continues like this. This will cause shrinkage of planting areas and a decrease in crops. There is a cotton production expectation of over 1 million tons throughout Türkiye and this is a pleasing development. However, if the prices are low in the new season, manufacturers who cannot see a return on their costs may not want to sell the product. The availability of high-priced cotton and high-cost yarns in the stocks of spinners may cause a 12-20 percent demand shrinking in the new season. It is expected that producers will see better prices after new year’s.

“The producer may sour on cotton and not plant next season if it continues like this”

“The sale price of the cotton unseed for a producer must not be below at least 21.05 TL”

TMMOB Chamber of Agricultural Engineers (ZMO) Şanlıurfa Branch, announced that they determined the kilogram cost of cotton unseed as 15.05 TL according to their cost analysis in its press release on the cost of cotton for 2022. The statement claimed: “The sale price of the cotton unseed for a producer must not be below at least 21.05 TL since the production costs increased by 200-300 percent in a year. It is inevitable that the cotton premium support, which is 110 krş, becomes at least 200 krş due to the increasing costs.” In addition, it was pointed out that the product should have a purchase guarantee so that the farmer could see the way ahead and that the base price should be determined before the harvest.

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