The 80,000 metric tons of cotton imported by Brazil’s domestic textile industry in May, June and July will come duty-free, thanks to an edict from the country’s Foreign Trade Chamber (Camex). The request to repeal the usual 10% tax came from private industry, which often struggles to acquire enough cotton during those months.
Overall, Brazil’s cotton imports have been declining, dropping from $932 million in 2011 to $361 million in 2012. Part of that decrease in imports is attributable to the banner year Brazil’s cotton growers had in 2012, but imports continue to shrink, from $69.2 million in the first two months of 2012 to $54.2 million during the same period this year.
During Brazil’s winter period from May 1 to July 31, prices of many agricultural products tend to spike due to declining stocks. So far, Brazil has been increasing its imports from the United States, India and Egypt, with import totals from Pakistan and China falling off.