BRAZIL: Textile Firms Cancel Cotton Imports

Several Brazilian textile producers have postponed or cancelled their cotton imports and replaced them with domestic cotton instead due to the valuation of the US dollar, industry officials have revealed.

Santista Texil has slashed imports by 50 per cent, while Vicunha Nordeste has started to acquire raw material at Mato Grosso state. Vicunha consumes 130,000 tons per year and in 2002 will import 10 per cent of that total, compared to 50 per cent in 2000.

Similarly, Fiacao Karsten, based in Santa Catarinan state, has signed a contract to acquire cotton from Mato Grosso state. Conab (Companhia Nacional de Abastecimento) will produce 916,000 tons of cotton in 2002, compared to the 700,300 tons produced this year.

Sector imports will decrease by 60 per cent to 120,000 tons, or $142 million. In 2000 the sector imported $322.9m.