September 2, 2009
Bad news for Lubbock and our local cotton industry. Texas Tech says that recently India increased subsidies for its cotton farmers. As a result, worldwide cotton prices could go down by as much as six percent.
Texas Tech says price supports in Brazil have also taken a toll on cotton prices here, even though U.S. cotton acreage is down 40 percent in the last four years. The World Trade Organization imposed penalties on U.S. cotton at the request of Brazil.
According to the ruling, Brazil can impose penalties of nearly 295 million dollars on U.S. imports. The complaint was based on subsidies to U.S. cotton farmers nationwide, including those around Lubbock.