São Paulo – The Brazilian Foreign Trade Board (Camex) has extended the zero import tariff on cotton. At the request of producers, the reduction of the tax was accepted by the Ministry of Development, Industry and Foreign Trade in September 2010. The measure should help supply the national market and was expected to remain until the 31st, but was extended due to the fact that producers still suffer with the cotton crop reduction in 2010. Although the zero tax is going to be extended until the end of the first half, the cotton import limit is 250,000 tonnes.
The 2010 crop reduction was due to excessive rain in Mato Grosso, the main producer in the country, with 678,000 hectares of cultivated area. Due to the climate and to the greater domestic and foreign demand, producers had a hard time supplying orders. In a press statement, the Camex said that it has extended the benefit as there is lack of cotton on the domestic market.
Brazil, however, should not suffer much due to the lack of the commodity. This year, producers expect to export over 650,000 tonnes of the product. Over the next three years, the cultivated area should grow between 10% and 20% and consumption on the domestic market should rise from the current 800,000 tonnes a year to on average 1.1 million tonnes.
According to Ministry figures, the Brazilian export record was in 2008, when Brazil shipped 548,300 tonnes of cotton abroad. In 2009, shipments totalled 523,563 tonnes and, in 2010, 512,971 tonnes.
The main importer of Brazilian cotton in March this year was South Korea. At the occasion, the Asian country bought 5,800 tonnes of the product, less than the 7,700 tonnes purchased in the same period in 2010. In March, Morocco was the main importer of Brazilian cotton. The country bought 148,500 tonnes of cotton, growth of 50% over the 98,700 tonnes acquired in the same month last year. The Emirates imported less. In March 2010, purchases totalled 364,600 tonnes of Brazilian cotton. In the same period in 2011, Brazil shipped 99 tonnes to the countries.
*Translated by Mark Ament
