Not carded or combed cotton market in Paraguay

Earlier Report Observations

Between 2018 and 2020, the domestic market volume for not carded or combed cotton in Paraguay expanded from 22 068 t to a peak of 34 780 t. This growth was supported by rising local production, which increased from 24 222 t to 38 464 t over the same period. However, from 2021 onward, the market volume began to contract, falling to 29 890 t by 2023, as a surge in exports started to claim a larger share of the output.

The export boom was fueled by several key developments. In 2022, the Ministry of Agriculture authorized the cultivation and commercialization of insect-resistant genetically modified cotton, enhancing crop productivity. Simultaneously, strong international demand and favorable global prices encouraged farmers to expand cultivation. Paraguay's low production costs in the Chaco region—estimated to be about 50% lower than in neighboring Argentina and Brazil—provided a competitive edge. Investments in ginning and spinning facilities began to strengthen the local value chain.

By 2023, exports had nearly tripled year-on-year to 17 299 t, and they continued their upward trajectory in early 2024, reaching 14 494 t in the first quarter alone. Asia emerged as the leading export destination, with key markets including Indonesia, Vietnam, and Bangladesh. Imports remained minimal, especially after the Ministry of Trade set a 0% tariff for a quota of 20 400 t of not carded or combed cotton in 2022, facilitating access to raw materials for domestic processors.

Production not carded or combed cotton in Paraguay

In kind, 2018-2021, t

Top producers of not carded or combed cotton, 2018-2021

World map of production of not carded or combed cotton, 2018-2021

Paraguay's production of not carded or combed cotton has increased for the third consecutive year. In 2021, the country produced 39 224 tonnes, marking a modest 2.0% rise compared to the previous year. Over the period from 2018 to 2021, production grew by 61.9%, with an average annual growth rate of 17.4%.

Annual dynamics of production in Paraguay in kind, 2018-2021, t

Exports not carded or combed cotton from Paraguay

Exports in kind, t

Exports of not carded or combed cotton from Paraguay have risen for the third year in a row. In 2021, export volumes reached 5 362 tonnes, showing a significant 29.5% increase from 2020. From 2018 to 2021, exports expanded by 79.8%, with a compound annual growth rate of 21.6%.

Annual dynamics of product's exports from Paraguay in kind, 2018-2021, t

Between 2018 and 2021, Indonesia and Vietnam were the dominant destinations for Paraguay's exports in kind. Indonesia accounted for 66.3% of total flows, while Vietnam made up 17.0%, together representing 83.3% of exports. Other partners contributed the remaining volume.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Paraguay in kind, 2018-2021

Exports in value, K $ US

The market exhibited volatility during these years. Exported volumes varied twofold, from a low in 2019 to a high in 2021. In 2021, the value of not carded or combed cotton exports from Paraguay stood at 9 069 thousand US dollars, up by 76.8% compared to 2020. The minimum value was recorded in 2019 at 4 511 thousand US dollars, with the largest decline of 6.9% occurring that year.

Annual dynamics of product's exports from Paraguay in value, 2018-2021, K $ US

From 2018 to 2021, Paraguay's exports in value terms were primarily directed towards Indonesia and Vietnam. Their combined share reached 85.3% of total flows, with other destinations playing a secondary role.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Paraguay in value, 2018-2021

Imports not carded or combed cotton to Paraguay

Imports in kind, t

After a two-year decline, Paraguay's imports of not carded or combed cotton have increased. In 2021, imports totaled 471 tonnes, a 2.9% rise year-over-year. Over the period from 2018 to 2021, imports decreased by 43.2%, with an average annual decline of 17.2%. The lowest volume was recorded in 2020 at 458 tonnes, and the largest drop of 44.2% occurred in 2019.

Annual dynamics of product's imports to Paraguay in kind, 2018-2021, t

Between 2018 and 2021, Brazil was the nearly exclusive supplier of not carded or combed cotton to Paraguay, accounting for 94.4% of total imports in kind.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Paraguay in kind, 2018-2021

Imports in value, K $ US

Following a two-year drop, Paraguay's import volume of not carded or combed cotton has increased. In 2021, imports amounted to 900 thousand US dollars, up by 31.7% from the previous year. From 2018 to 2021, imports fell by 41.5%, with an average annual decrease of 16.4%. The minimum value was recorded in 2020 at 683 thousand US dollars, and the largest decline of 51.8% took place in 2019.

Annual dynamics of product's imports to Paraguay in value, 2018-2021, K $ US

Throughout 2018 to 2021, Brazil was the key partner for Paraguay's imports in value terms, representing 95.3% of total flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Paraguay in value, 2018-2021