Home / Knowledge / News / Textiles / China to hold cotton reserves; may not impact imports
China to hold cotton reserves; may not impact imports
26
Oct '12
There will be no impact on exports of cotton from India or Pakistan, despite the Chinese government deciding not to sell cotton from the huge reserves it has created in the previous cotton year as part of its state cotton reserves, was the opinion of experts from the cotton industry in Pakistan and India.  

National Development & Reform Commission (NDRC) – an apex economic decision body of the Chinese government has announced that China will not liquidate its state reserves cotton in the new cotton season. “It will also issue cotton import quotas on low tariffs totaling to 894,000 tons”, NDRC said. 

From September 2011 to March 2012, the Chinese Government procured 3.22 million tons of cotton for its state reserves. In addition, one million tons of cotton was imported and added to state reserves, which already had 300,000 tons of cotton from previous season. Thus, by March-end, China had a mammoth 4.52 million tons of cotton in its state reserves.

“The decision of the government implies that it encourages textile mills to import low-priced cotton from overseas markets as well as take care of interests of its cotton farmers”, a top source in the Indian Textile Commissioners office informed fibre2fashion.

“Cotton exports to China are very low currently as they are trying to source low-priced cotton from overseas markets. However cotton exports to other countries are begetting 81 US cents / pound, while Chinese importers are demanding at 71 cents / pound.

“Secondly, current demand from Chinese cotton textile units is also very low, due to the slowdown in demand from its traditional markets like the EU and US. Thirdly, cotton yarn exports are on the rise as costs of spinning yarn are going up and it is cheaper for China to import yarn. So, I do not foresee any hike in demand in the immediate future, he wound up by saying.

The newly appointed President of the Pakistan Ginners Association – Mr Mahesh Kumar was of the opinion that cotton coarse yarn exports to China are climbing which has meant more consumption of cotton in Pakistan. So, he expects that if yarn export trends continue in the same manner, the cotton produced in Pakistan will be consumed in the country itself.

“Secondly, exports to China have fallen in the last cotton season. Thirdly, currently cotton prices in Pakistan are higher than those ruling in global markets. Last but not the least, the quality of cotton currently arriving in the markets is not of such a good quality, which again is not good enough for exports”, he said.

Mr Vishwanathan, Secretary of the Indian Cotton Federation says, “Consumption of cotton has gone down in China and at the same time, Indian cotton prices are ruling higher. So, cotton exports to China have already slowed down. If crop arrivals increase and prices fall in December or January, we can expect cotton exports to revive to China.”

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: ABARES

Textiles | On 13th Dec 2017

Australian cotton production to grow 4% in 2017-18: ABARES

Cotton production in Australia is forecast to rise by 4 per cent to...

Global economy now growing by about 3%: UN

Textiles | On 13th Dec 2017

Global economy now growing by about 3%: UN

There is an upturn in the global economy, and it is now growing by...

Clothing prices rise 3% in November in UK market

Apparel/Garments | On 13th Dec 2017

Clothing prices rise 3% in November in UK market

As post-Brexit referendum currency adjustment continues, prices of...

Interviews View All

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Silvia Venturini Fendi
Fendi s.r.l

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

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search