Cotton Crisis: Treasury and Finance’s Inadequate Support Policies Threaten Production

Cotton growers face rising costs and shrinking sowing areas, with Treasury and Finance’s inadequate support deepening the crisis.

Industry’s Tightrope

■Cotton: The cornerstone of Turkey’s ready‑made garment and textile industry

■Rising production costs strain competition with Italy and the US

■Potential 50% reduction in sowing areas

Dual‑Sided Exit

■Weather conditions remain favorable this year

■Producers are losing money; land sellers also face losses

■Textile sector sees growing customer attrition

Historical Closure: Treasury and Finance’s Limited Resources

■Treasury and Finance respond with “our resources are limited, we offer the maximum support”

■Producers deem this support insufficient

■Production exodus and shift to alternative products accelerate

Sectoral Domino: Impact on Textiles and Ready‑Made Garments

■Currency pressure prevents producers’ costs from matching real values

■Potential domino effect into the yarn industry

Policy Recommendation: Flexible Premium Model

■Premiums should be tied to producers’ cost and revenue conditions

■Increase support when profits are low

■Adjust when profits rise

Conclusion: Half‑Century Shrinkage Risk

■Cotton production could shrink by 50% if the situation persists

■Sustainable planning and effective support policy are imperative

Expert Note: The decline in cotton production will erode Turkey’s textile competitiveness; without a flexible support mechanism from Treasury and Finance, the sector will face significant losses in both domestic and international markets.