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Peru’s Cotton Farmers Need Modernization, Not Subsidies

When it’s deliver-or-die, supply chains become the lifeblood of a company. To that end, the fashion industry has embraced technology to navigate today’s hyper-complicated supply chain, with myriad solutions shaping the first, middle and last mile. Call it Sourcing 2.0.

A fragile economy, plummeting exchange rates, and growing costs of labor have kept Peru from becoming major players in the textile and clothing export game, according to a statement from the Asociación de Exportadores (ADEX).

The association’s president, Varilias Juan Velasquez, said that cotton exports are essential to the sector’s progress. He called the effect of government attempts to increase cotton output “minimal”–they have primarily consisted of subsidies to cotton farmers–and urged the government to revisit its strategy.

In the same statement, ADEX’s garment division chairman, Pedro Gamio Palacio suggested that Peru both increase its number of cotton fields and update its agricultural practices. He recommended the government promote modernized irrigation projects, technical assistance, and better access to financing for cotton farmers.

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