Paraguay’s cotton sector demonstrated significant growth in 2024, with fiber exports increasing by 63% to reach USD 48.5 million. This gradual recovery marks the resurgence of a commodity once known as «white gold» due to its crucial role in rural economy and its significance as an income source for farming families.
The surge in exports is primarily attributed to the involvement of Mennonite producers in the Chaco region, who have optimized textile production through advanced technology adoption and efficient agricultural practices. These producers have consistently expanded their cultivation area, enabling sustained growth in production and export volumes.
The mechanization of the production process has been a decisive factor in improving Paraguayan cotton’s competitiveness in the international market. However, despite the sector’s rebound, cotton no longer holds the economic significance it had in past decades, when it represented a fundamental income source for farming families, particularly for purchasing school supplies in rural areas.
The cotton sector’s growth in recent years has been remarkable. Exports increased from USD 9 million in 2021 to USD 48.5 million in 2024, representing a 415% rise in just four years. This positive trend indicates cotton’s potential as an income alternative for rural producers.
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Agricultural sector analysts emphasize that if the current pace of technology investment and cultivation area expansion continues, cotton production could maintain its upward trajectory in coming years. However, they also stress the importance of diversifying export markets to avoid dependency on few buyers and ensure sector stability.
Despite progress, the sector faces challenges including international market price fluctuations, competition from other producing countries, and adverse weather conditions. To strengthen the industry, supportive policies are needed to encourage sustainable production and provide credit access to small and medium-scale producers.
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