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Abrapa wants to double Brazilian cotton market share in India

Posted by Marina

First largest cotton producer in the world, third in volume of exports and seventh largest global importer of feather, India is one of the markets that are on the radar of the Brazilian Association of Cotton Producers (Abrapa), in terms of the possibility of expanding the presence of the national product. The goal of the entity is, still in this commercial year, to double the market share in that country, which, today, is 6%. As part of the strategy for this, Abrapa held this Thursday morning (10) a meeting with the diplomatic corps in Brazil in New Delhi, together with the Brazilian Trade and Investment Promotion Agency (Apex-Brasil) and the Association National Exporters of Cotton (Anea).

The meeting was attended by the ambassador to Brazil in India, André Correa do Lago, and agricultural attaché Dalci Bagolin, among others, and is part of the actions of the Cotton Brazil project, undertaken by Abrapa and the Federal Government (Apex-Brasil / MRE ), with the participation of Anea, which, among several initiatives, includes the first Brazilian cotton representation office in Asia, opened in the city of Singapore.

According to the president of Abrapa, Milton Garbugio, the meeting was the first in a series that is being scheduled with Brazilian diplomatic representatives in key countries for exports of the national featherweight. “We want to show the stages of the Cotton Brazil project and align our actions so that this initiative is successful. We have everything for this, quality, production volume, constant supply and sustainability certification, burden by burden. We need to show this to the world in order to gain market share, ”stated Garbugio. The Cotton Brazil project, which promotes Brazilian fiber in the Asian market, aims to make the country the first in the global ranking of exports in 2030. Today Brazil ranks second, preceded by the United States.

For the director of International Relations at Abrapa, Marcelo Duarte, the fact that India is currently an unrepresentative place in Brazilian cotton exports creates great opportunities. “We have some challenges. The first, which is already being overcome, is seasonality. Traditionally, the peak of Indian exports coincides with the top of Brazil's shipping period. Now, with the harvest here around three million tons, we are exporting the whole year. In other words, we are twelve-month suppliers ”, he explained.

Another issue that is being worked on through the Cotton Brazil project is the perceived quality of Brazilian cotton. “Although, technically, in terms of intrinsic characteristics, there are almost no differences between American and Brazilian cotton, there is a great distortion of image. This only changes with bold promotion work ”, stated Duarte.

Beautiful challenge

The space for growth in national fiber consumption was confirmed by the Brazilian ambassador to India, André Correa do Lago. According to him, despite the great drop in the country's GDP in the last quarter - due to Covid-19 -, in the medium term, the Indian population, the second largest on the planet, will need to buy. “I believe that if India moves forward as it intends, with cotton as its first need, and the Indian market increases brutally, without the possibility of increasing production proportionally to that consumption, an extraordinary market space will open up for the Brazil. It will be a beautiful challenge and we have the whole team here at disposal ”, he said.

Dalci Bagolin, agricultural attaché in India, highlighted the country's specificities, which need to be observed in trade relations, but believes that there are good opportunities. “India is able to supply the domestic market in several cultures, but it has great difficulty in increasing cotton production. On the other hand, it is highly protectionist and wants to produce self-sufficient clothing in its territory. There are also a large number of small producers who depend on the crop, ”he said. Both Bagolin and the ambassador referred to low Indian productivity and technical quality in cultivating the commodity.

Among the meeting's participants were the former president of Abrapa, Arlindo Moura, the president of the Goiana Association of Cotton Producers (Agopa), Carlos Moresco, the president of Anea, Henrique Snitcovski, the agribusiness coordinator of Apex-Brasil, Alberto Carlos Bicca, and the coordinator of Image Promotion and Export Culture at the Ministry of Agriculture, Livestock and Development, Aurélio Rocha.

Source: Agrolink