Required Report:Required-Public Distribution Report Name:Cotton and Products Annual Country:TurkiyePost:AnkaraReport Category:Cotton and Products Prepared By:FAS Turkiye Staff Approved By:Rishan Chaudhry Report Highlights: Turkiye’s cotton production in marketing year (MY) 2026/27 is forecast to decrease to 525,000 metrictons (MT; 2.41 million bales), based on theassumption that cotton prices will remain stagnant andorders to Turkish ready-to-wear apparel producers will remain low. Cotton farmers were unable to makeadequate profits in recent MY's to cover rising input costs. In MY 2026/27, Turkish cotton consumption THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY I.Production Post projects approximately 525,000 metric tons (MT)(2.41million bales) of cotton fiber production onabout 310,000 hectares (ha) in marketing year (MY) 2026/27. This forecast is about 21 percent less thanthe previous MY’s revised estimate of 665,000 MT (3.05 million bales). The reason for the decrease in Cotton prices have been lower than cotton farmers would have liked in last few MYs, leading todecreased profits. Therefore, a contraction in the planting area is predicted. Although at slower rates costs are continuously increasing inTurkiye due to ongoing high inflation.Additionally, the war in Iran has Regional hostilities have the potentialto make margins even thinner or According to data from Turkiye’sGeneral Directorate of Meteorology,MY 2026/27 precipitation wasimproved compared to the last MY throughout Turkiye.1As a result, water reservoirs are in better shape compared to last MY, but expertssay that they are not at levels to feel totally safe. Low Cotton Prices Continue to Lead to Decrease in Cotton Production Domestically produced cotton was$1.58 per pound in June2022,just before cotton prices started to decline globally.As of December 2025, those prices were as low as 68.19¢per pound, which was 6 percent lower than the previousyear. The price rose to an average of 69.45¢ per pound inFebruary 2026. Domestic cotton prices are very much tied tocotton prices in international markets and decreasing In addition to low cotton prices as of MY 2025/26, Turkiyecontinues to deal with inflation and rising input prices inlabor, seed, fertilizer, diesel, and electricity. According totheTurkish Statistical Institute’s(TurkStat) AgriculturalInputs Price Index (AIPI), inflation was about 39 percentfor 2023 and 32 percent for 2024 and 2025. Similarly, the *Average of prices thatoccurred atIzmir CommodityExchangeduring real time transactions each month. The Governmentof Turkiye (GoT) changed the subsidy system at the end of Summer 2024 for 2025erdem onward. With the new system, the subsidy rate is not given per kg anymore. Subsidies will be calculatedper decare (da) of soil cultivated. The new system is basin and multiplier based; there is a designatedbasin for each crop. Crops have corresponding multipliers to calculate the subsidy rates by multiplyingwith a declared coefficient that will be announced every year (the multiplier for cotton is 2.25, thecoefficient is 310TL/da for 2026).3,4If the crop is planted in one of the designated basins it will getdouble the subsidy per da. This equates to 1,395 TL/da (310 TL/da x 2.25 x 2) for seed cotton, if plantedin the designated basin ($31.34/da with March 2026 exchange rates). This makes approximately 3.10TL/kg (∼7¢/kg) according to market sources with regular yield. It was calculated approximately as 2.20TL/kg (∼6¢/kg with March 2025 exchange rates) for seed cotton per kg if planted in the designated 10 days as of March 10, 2026.5The GoT has decreased the customs tariffs on urea, one of the mainfertilizer raw materials, to zero as of March 7, 2026. Some farmers argue that an additional 10 TL/kg (∼22.47¢/kg) should be paid to producers of seed cotton for profitable production. Turkiye’s Cotton Production Concentrated in Three Areas There are three majorcottonproduction regions inTurkiye.The first one is the Aegean region,locatedin the western partof the country, mostlyin theAydin and Izmir provinces. The second is theCukurovaregion,which isthe area in and aroundAdana provinceand severalneighboring provincesin theeastern Mediterranean area, located in south-central Turkiye.Cukurovahastraditionallybeen a cotton productionarea,but in the last decade many cottonfieldshave been replacedby citrus orchardsdue to ease of exports and more stable income.In addition, farmersin this regionhave The thirdandlargest area of production for cotton isin the southeast ofTurkiye,where the SoutheastAnatolia Project (GAP) has been underway since the late 1980s.GAP is a major hydroelectric andirrigation projectdeveloped by the GoT, supportingthe plains ofthe southeastern area of the country.The GAP areaincludesthe northern Mesopotamia region north ofthe Turkiye–Syria border.According In addition to these three major plantingzones,there is a s