India, with an annual production of 5.33 million tonnes, stands as the second-largest cotton producer globally, behind China. Meanwhile, Brazil, the third-largest producer, generates 3.64 million tonnes. However, unlike India, Brazil has minimal domestic consumption, making it the world’s largest cotton exporter, shipping 2.72 million tonnes annually. In contrast, India imports 0.44 million tonnes of cotton to meet its domestic demand, presenting Brazil with a significant opportunity to expand its market share in India. As part of his efforts to tap into the Indian cotton market, Marcelo Duarte Monteiro, Director of International Relations at the Brazilian Cotton Growers Association (ABRAPA), shared insights with Mohd Mustaquim on Brazil’s cotton landscape and its exports’ potential.
Excerpts:
The Brazilian cotton market faces stiff competition in exports from the US and Australia, with synthetic fibres being another significant challenge. How do you position your cotton exports globally in light of these obstacles?
While the US and Australia are major players in the global cotton market, Brazil has experienced significant growth as well. However, we view synthetic fibres as our primary competitors. The competition among Brazil, the US, and Australia is healthy—we learn from each other. For instance, we adopt best practices from Australia and the US, and this mutual learning benefits all of us.
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Our main concern is the rise of synthetic fibres, which are derived from fossil fuels and contribute to plastic pollution, particularly microplastics in the oceans. Research shows that the average person ingests the equivalent of a credit card’s worth of plastic each week, due to microplastics in our waters and food. This issue highlights the importance of natural fibres like cotton. Whether it’s US, Brazilian, Australian, or Indian cotton, the use of natural fibres aligns with sustainability goals, making us confident that cotton is the right choice for the future.
In India, synthetic fibres dominate the lower-income market. How do you plan to compete with synthetic fibres and raise awareness about cotton’s benefits?
Competing with synthetic fibres on price is challenging, even though we strive to improve productivity, efficiency, and cost-effectiveness. Synthetic fibres will always have a price advantage, but cotton offers incomparable quality. The environmental impact of synthetic fibres, particularly plastic waste, is a significant issue, especially in countries with large populations like India and Brazil, where waste management is a challenge.
As the cotton industry, we need to highlight cotton’s sustainability. Cotton is biodegradable and provides livelihoods to millions of farmers worldwide. Additionally, the comfort and quality of cotton offers are unmatched. By emphasising these aspects, we can educate consumers about the benefits of choosing natural fibres over synthetic ones.
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Since the introduction of Bt-cotton, India’s cotton production has surged over the past two decades. As India continues to improve productivity through new policies and technologies, how do you see the future of market share in India?
India has tremendous potential to increase its cotton production. Currently, India cultivates about 12.5 million hectares of cotton, but its productivity is only a fraction of what Brazil or Australia achieves. With focused efforts, India can significantly improve its productivity, which would also free up land for other crops.
This is an opportunity, not a threat, for Brazil. Our competition is with synthetic fibres, not other cotton producers. If India succeeds in boosting its productivity, we view it as a positive development for the global cotton industry.
Transporting cotton from Brazil to India, a distance of 18,000 kilometres, raises costs. Considering farmers’ interests, India is unlikely to see duty-free imports anytime soon. How do you plan to maintain competitive pricing in this scenario?
Logistics and distance are indeed challenges, but as trade between Brazil and India increases, we could explore more direct shipping routes, which would reduce costs. For example, Brazil exported a million tonnes of cotton to China last year. If we export even a fraction of that to India, it could open up opportunities for other products as well.
In terms of duties, Brazil should focus on supplying specific grades of contamination-free cotton, staples higher than 29 or 30 millimetres. This niche could fill gaps in India’s textile industry without directly competing with local farmers. We see this as a complementary relationship, not a competitive one.
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Climate change is a major threat to cotton cultivation worldwide. How is Brazil addressing sustainability in cotton production?
Climate change is a global challenge, and its effects are unpredictable. While cotton is a resilient crop, it suffers when weather conditions are unfavourable. To combat this, we are investing in research to develop new cotton varieties with better resistance to climate stress.
Irrigation is another key solution. Currently, 92 per cent of Brazil’s cotton is rainfed, but we have enormous potential for groundwater irrigation. Expanding irrigation would help mitigate the effects of climate change on cotton production.
How does Brazil ensure the quality of its cotton exports?
In Brazil, we perform High Volume Instrument (HVI) testing on every single bale of cotton. We take two samples from each side of the bale, combine them for uniformity, and conduct both visual and HVI tests. The results are stored in a database, which allows us to track the performance of different varieties and regions.
This system enables us to deliver the right product to our clients while also providing valuable feedback for research. By analysing the data, we can continuously improve our cotton varieties, increasing both yield and quality over time. This commitment to quality has been key to our success in the global market.