Cotton is a traditional agricultural product in Paraguay. It is grown in the Eastern region and in the center of the Western region of the country. Most of the agricultural land in Paraguay is suitable for cotton production. The 1990/91 Agro-farming Survey shows that nearly 950,000 people in 190,000 farm families, or 63% of all farm families in Paraguay, were directly dependent on cotton production and marketing for their income. Cotton represents one of the main sources of foreign currency for Paraguay and also provides fiber for the domestic textile industry. Cotton seed is used for planting seed and the production of oil; cotton seed oil is used locally in the formulation of balanced foods. Paraguay exported 217,041 tons of cotton in 1991 with avalue of 319 million dollar, representing 43% of total exports. However, production and exports have decreased since 1991, and cotton represented only 18% of foreign currency earnings in 1994.
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