The Cotton Industry in Decay

Abstract

In the 1950s cotton was a flourishing industry, strongly supported by the Communist system. However, cotton production has fallen drastically over the last 30 years. We explore the factors which have caused this collapse. These include: low cotton prices relative to competing crops, poor management during the transition to privatization; the collapse of the irrigation system; and sharply rising input costs. Along with the dramatic decrease in cotton production, there has been was a significant reduction in the importation of cotton. The low levels of production and of imports have created serious problems for the textile-manufacturing sector. Unemployment has soared, and much of the manufacturing capacity has gone unused. Today textile manufacturing equipment is outmoded and requires major repairs and/or renovation. We conclude that the Bulgarian cotton industry is in a precarious position; major investments will be needed to resuscitate it.