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Cotton price variations take toll on China's textile firms
Jun '12
Despite the fact that, China is the largest producer of cotton in the world, it has to rely on overseas sources to satisfy demand of its cotton textile enterprises.

At the same time, cotton output in China is not rising and fluctuating from year to year.

After cotton prices peaked to 31,000 Yuan / ton last year, many more farmers’ came forward and increased planting of cotton.

However, since the beginning of this year, cotton prices have bottomed out to less than 19,000 Yuan / ton.

The first fluctuation occurred in 2003, when the highest price rose to over 18,000 Yuan / ton, but later slipped to just 12,000 Yuan / ton.

This causes apprehensions in farmers as they plant cotton with the objective to generate better returns, but end up getting a pittance.

Fluctuating cotton prices have meant losses for Chinese cotton textile enterprises, many of whom have still not recovered from last years fluctuations.

Fibre2fashion News Desk - China

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