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High cotton inventory causes concern in China's Xinjiang region
11
Nov '11
In spite of good production estimates for the current year, concerns of the cotton producers in China's major cotton production base towards west of the country do not seem to be easing.

The Xinjiang Uygur Autonomous Region in China is believed to harvest good cotton crop this year, but the cotton producers in the region are concerned due to rising stock of inventories, owing to inadequate processing facilities, relatively less demand from textile industries and inadequate rail transportation facilities.

According to official statistics, private companies and government agencies procured 1.23 million tons of cotton from farmers in the region till October-end, indicating a 240 percent rise over purchases during the corresponding period of last year.

Of around 732,000 tons of cotton that needs to be transported from the region, only one-third was shipped out till October end, mainly owing to reduction in the number of goods trains.

Xinjiang region contributes around one-third of China's total cotton production. During the ongoing season, the region is likely to witness a year-on-year rise of around 17.4 to grow to 3.42 million tons. By now, the region has already harvested 60 percent of the crop.

China leads the world in cotton production and consumption. As per National Statistics Bureau data, the country's overall cotton production in 2010 was 5.96 million tons. This year cotton production in the country is estimated to reach 7.28 million tons.

Fibre2fashion News Desk - China


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