COVID-19 and Technology Restrictions, Pressuring Mexican Cotton Industry

MEXICO CITY, MEXICO – As the Mexican government tightens regulations on their domestic commercial farming operations, it’s beginning to hit the cotton industry south of the border. According to USDA’s Foreign Agriculture Service (FAS), the Mexican cotton sector is facing a myriad of challenges, resulting in significant impacts to production this marketing year, even while COVID-19 demand reductions and supply chain impacts in the textile industry are likely to continue presenting obstacles for growth. Seeds shortages due to lack of genetically engineered (GE) seed approvals persist, and a glyphosate import ban is likely to affect pest protection in the near future, as existing stocks are dwindling down. In addition, electricity cuts are affecting irrigation machinery and access to water for producers in Chihuahua State, the country’s largest producer. Whether this will provide more opportunities for U.S. exports to Mexico are unkown since reductions in production are likely to be fully recovered by domestic supply stocks, as lowered global and domestic textile demand has relieved pressure for imports.
(SOURCE: All Ag News)