P. Sarojini
Uganda (CWBN)_ According to the report from the Bank of Uganda, cotton exports of the country, both in terms of quality and quantity, recovered from a recession, increasing in the period ending October.
The data from the Bank of Uganda shows that the revenues from cotton increased in October to $5.9m (Shs21.8b), thereby recovering from a downfall of $0.13m (Shs481m) in May. According to the reports, this was the huge slump since October 2016, when the revenue was only $0.12m (Shs444m). Cotton is one of the main traditional exports of Uganda. The report indicates that Uganda exported 25,289 bales during this time, whereas exported only 519 bales in May.
The principal monitoring and information manager of the Cotton Development Authority, Ms Damalie Lubwama, indicated that the demand for cotton was generally low during March, April and May and that the cotton calendar tends to be more alive during the year end.
She said, “The current rise in volume and value is because we are entering a 2021 marketing season”, while noting that demand from apparel manufacturers, especially in Asia and Europe, has increased.
Cotton being one of the traditional cash crops of Uganda, contributes to both the export revenue as well as local textiles and apparel industry of the country. Approximately 2.5 million people are employed in the cotton value chain across the country, who are engaged primarily in the manufacturing and sales of primary products such as textiles and apparel and by-products such as soap, edible oil and animal feed.
The cotton sector had been a pillar to the country’s growing export market for years. But now due to Covid-19 pandemic, the industry has been hit hard. As apparel manufacturers witness a decrease in demand for finished goods such as garments, Ms Lubwama said the industry is experiencing a reduction in demand.
