Cost of production of raw cotton declined in 2015/16
Jan 5, 2017
The International Cotton Advisory Committee undertakes a study on cost of production of raw cotton every three years. The last report published in October 2016 based on the data for 2015/16 showed that the net cost of production declined by 23% to US$1.16 per kg of lint produced. The decline is due to the lower cost of inputs and higher income from sales of seed after ginning. The data also showed that the net cost per kilogram of lint produced under irrigated and rainfed conditions is $1.05 and $1.20 respectively. It is cheaper to produce cotton under irrigated conditions, due to higher yields, than in rainfed conditions. The 2015/16 data showed that after three years the cost of fertilizers applied to cotton remained stable at 27 cts/kg of lint produced. Fifteen years ago farmers were spending more money on insecticides and their application than on fertilizers and weeding. While the cost of weeding and fertilizers has been rising, the cost of insecticides and their application has declined. The survey shows that a cotton grower spent 12 cents on insecticides in 2015/16 to produce a kilogram of lint as compared with 16 cts/kg in 2012/13. Thirty-one countries, which accounted for 87% of world cotton production, participated in the survey. The full report on Cost of Production of Raw Cotton containing detail cost data on individual inputs and operations can be ordered from firstname.lastname@example.org.
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