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Cotton imports necessary due to demand gap
30
Sep '11
In 2011, the total area under cotton in China is 80.18 million Mu (1 hectare = 15 Chinese Mu), as per the China Cotton Association monitoring report. This is 4.1 percent more than the earlier estimate.

During late May to August in the current year, the climate was suitable for cotton growth, except for some regions where the crop was affected by natural disasters.

Overall, the growth of cotton has been good and the total production is likely to be around 7.38 million tons, an increase of 11 percent year-on-year. Compared to this, the country's total cotton demand is about 10 million tons. Thus, there is a demand gap of nearly 2.7 million tons, which would be filled by imports.

In the absence of heavy subsidies to cotton growers as in the US, area under cotton is not expected to increase. The cotton area will remain around 70-80 million Mu, while total production will be about 6-7 million tons. The total demand expected to remain around 10-11 million tons. So, demand gap will prevail for a long term, necessitating China to import cotton.

Fibre2fashion News Desk - China


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