Extreme weather conditions led to a decrease in the cotton harvest in Brazil and the U.S. – the largest exporters, and today the leader in its production India is even forced to import this raw material. Bloomberg reports on it. As a result, cotton prices today rose by 30%, while its stock continues to decline.

India is facing the need to import cotton stocks because of heavy rains and pests, while China is worried about the upcoming harvest amid a strong heat wave.

Why are cotton prices rising?

The U.S. and Brazil account for half of world cotton exports. In the U.S., due to drought, cotton production may drop to its lowest level for the first time in more than a decade. The second-largest exporter, Brazil, also faces extreme heat and drought, which has reduced its crop by nearly 30%. Why are cotton prices rising?

“This combination of extreme weather events caused by climate change has caused cotton prices to rise by as much as 30%,” the agency writes.

According to Abrapa, about 200,000 metric tons of stocks have dried up in Brazil, with production estimated at 2.6 million tons or less. Producer Bom Futuro reports a 27% drop in yields from the previous season.

Cotton prices are projected to rise even more in the coming months as the crop declines. This year’s price increases have already cut the margins of clothing suppliers, which could lead to higher prices for many necessities.

Earlier we reported that the EU is asking Norway for gas.