Mexico: Cotton and Products Update

Commodities

Updated data from the Mexican State Committees of Plant Health and producer associations shows a higher than expected reduction in cotton planted area for marketing year (MY) 2020/21. The new forecast of 147,965 hectares reflects a 36 percent reduction compared to MY 2018/19. Planted area has been most affected in the state of Chihuahua, the country’s largest producer, with a forecasted 37 percent reduction. Factors contributing to the reduction include lack of genetically engineered (GE) seeds, no available glyphosate stocks to manage weeds, high producer debt due to little to no government support, rising costs of production, and low sales due to Covid-19 industry disruptions. The reduction in production will be covered by existing stocks. The textile industry has not been operational for nearly three months due to Covid-19, with government data showing production reductions of 67 and 77 percent in April and May, when compared to 2019.

Mexico: Cotton and Products Update