Home / Knowledge / News / Textiles / Chinese mills may face tough times if cotton prices rise
Chinese mills may face tough times if cotton prices rise
Dec '11
China's cotton textile mills might be hit hard, incase cotton prices harden next year, due to continued cotton purchases by the government and a fall in cotton crop acreage.

The government has recently amended the sliding tax imposed on cotton and will also continue to impose the tax on certain quantities imported outside tariff quotas from 2012.

After implementation of the new sliding tax policy, import cost will be unchanged if NY cotton futures price stays below 50 cents / lb. But costs could rise if NY cotton futures price increase in the near future.

Cotton price has been declining since March this year and they have plunged by as much as 40 percent on the Zhengzhou Commodity Exchange.

The market does not have much high-quality cotton for consumption of domestic textile mills, due to active cotton procurement by the Government to support domestic price.

As of Friday, the government had purchased 1.62 million tons cotton from farmers. Analysts predict that government's purchase will reach 2.5-3.0 million tons, accounting for 35-42 percent of 2011-12 production.

Import quota for 2012 stands at 894,000 tons, which will attract a duty of one percent. In addition, the government approves a certain number of import quota under sliding tax every year, the sliding tax rate is from 5 percent to 40 percent.

Fibre2fashion News Desk - China

Must ReadView All

Apparel/Garments | On 26th Oct 2016

SGS develops 4C chemical management model for apparel

SGS, a leading inspection, auditing, certification, testing, and...

Textiles | On 26th Oct 2016

Platinum Equity acquires International Textile Group

International Textile Group (ITG) has been acquired by Platinum...

Textiles | On 26th Oct 2016

Whitehouse & URI Business Centre start RI textile network

Senator Sheldon Whitehouse and the University of Rhode Island...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Nuno Venda

‘There has been an increase in demand for water based inks, rather than...

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search