Mexico: Cotton and Products Annual

The Mexican cotton sector is facing a myriad of challenges, that coupled with reduced global demand and low global prices, will result in a reduction in planted area and production for marketing year 2020/2021. The national seed shortage continues, as the Government of Mexico continues to delay the issuance of seed permits. Additionally, rising costs of production, coupled with reductions in federal funding for pest eradication programs are resulting in producers planting other crops, like wheat and watermelon. The state of Chihuahua, the country’s largest producer, is forecast to have a 25 percent reduction in planted area. Imports of cotton, which come almost entirely from the United States, are forecast to increase only two percent, as the domestic industry is expected to draw on existing stocks.

Mexico: Cotton and Products Annual