After the Covid -19 Pandemic, which broke out in the last quarter of 2019, the importance of production has once again emerged. Cotton prices have continued their upward trend as the most important raw material of textile enterprises. Cotton prices, which reached 30 percent in the last six months, have also directly affected the costs of textile enterprises. With the increase in costs, yarn prices have also increased. Carded yarn price, which was $ 2.80 last month, has risen to $ 3.70 in a month.
Cotton Production Will Fall
It is reported that the main reason for the price increase in the international cotton market is the increase in demand in China, which is the largest consumer market worldwide. On the other hand, according to the report publicized by the US Agriculture Ministry, production of cotton is expected to reduce with the adverse weather conditions and pest infections in Greece, US, Pakistan and in Turkey. According to the USDA data, cotton production figures would be as follows in 2020-2021; India with 6.2 million tons, China with 5.7 million tons, US with 3.8 million tons, Brazil with 2.6 million tons, Pakistan with 1.4 million tons , and Uzbekistan and Turkey followed by 750 thousand tons.
Baris Kocagöz Warnings’
Making a statement to our magazine in January last year, İzmir Commodity Exchange (İTB) President Barış Kocagöz stated that Turkish cotton is sold 15 percent cheaper than its alternatives abroad. Pointing out that the reason for this is the industrialist who imports more than the need for very high prices, Kocagöz said, "For some reason, the industrialist who imports without custom duties and without worrying about its cost when it comes to imported cotton, and same industrialists however, while importing domestic cotton, regard it as a commodity that should be traded as cheap as possible.Therefore, even prices for Turkish products are at base level whose available stock around 70-80thousand tons, but again, product of foreign manufacturer, maybe around one million tons, would export to our nation by a 10 per cent rise. Thereby, the morale motivation of domestic producer is at ground zero level. As said, our production will decrease by 35 per cent this year. If we would give our manufacturers a chance to return, I would guarantee that other half also would leave us.’’ said Mr. Kocagöz in his previous speeches’ who has reminded us the situation we are in with the warnings he has outspoken and publicize.
