Well…..times are very “interesting” shall we say at the moment. Cotton prices have reached all all time high by a considerable amount. They have $2 a pound and it has filtered through to garment manufacture over the last year.
The reasons why are many. But basically there is a world shortage.
Less and less cotton has been grown globally because other crops have been more viable for farmers to grow. particularly in th USA where farmers were given money by their government to grow crops which could produce fuel. So they have reduced production of cotton and grown corn instead. Cotton a little while ago in the USA was being sold for around 40-50 cents a pound. However in time we think that some of these farmers will switch back to growing cotton and help reduce the short supply
Then there was the bad weather and severe flooding in Pakistan and a bad monsoon in India hit their production hard. The final blows were a poor crop in China and then the Indian government slapped export quotas on raw cotton.
The result – a shortage of cotton. Shortages of anything means higher prices as we manufacturers rush to buy cotton so that we are sure not to let our customers down.
Phew. It si taking its toll but in one way it has given more “clout” to the farmers who are now able to influence the price where once they were in the control of the big buyers.