Cotton prices touch record high levels

     Prices of cotton have registered record high levels owing to the growing prospects of better earnings for cotton growers and enhancement in the export earnings this year. Cotton prices increased to sh1600 from sh900 per kg a year ago because the cotton stocks started getting depleted owing to low supply of the raw material and a strong demand.

The high prices of cotton prevailing in the markets will encourage the cotton growers to cultivate more cotton.

 The rise in cotton prices is largely attributed to the increase in global demand for cotton. Dearth of cotton in other countries has helped the cotton sector to flourish in Uganda.

Natural calamities have adversely affected the top cotton producing countries of the world – the US, China and Pakistan. India, which is the world’s second biggest cotton producer, has set a ceiling on cotton exports in order to encourage the domestic consumer demands and reinforce its domestic textile sector.

Cotton production is expected to double this year. In spite of the untimely drought that has hit the entire south-western region; the country is expected to produce 130,000 bales of cotton from 70,000 bales last year.

The cotton sector of Uganda is coming back to stability, particularly after the peace restoration in northern part of the country, which was known for cotton production. Further, the cotton regulatory body has extended its support to the cotton growers by providing them with high-quality seeds as well as pesticides at reasonable prices.

Development of the spinning as well as textile industry will create further demand for raw cotton. This will further raise the cotton prices.