Cotton prices have risen due to extreme heat, which could lead to higher prices for clothing and paper, reports Bloomberg.
Cotton has risen in price in the world market by 30% – this is a record figure for the last ten years. The drought led to the deterioration of 200 thousand tons of stocks.
India is the leader in cotton production, but heavy rains and pests have damaged crops so much that it is now forced to buy cotton from other countries. The heat wave in China is also raising concerns about the upcoming harvest. In the US, a worsening drought could drive production to its lowest level in a decade. In Brazil, the harvest has already fallen by almost 30%.
According to experts, the reduction in cotton production and its rise in price can lead to a jump in prices for a number of goods – diapers, T-shirts and other clothes, cardboard and much more. Jane Elfers, CEO of clothing retailer Children's Place, called the situation "a huge problem," writes Bloomberg.