Home / Knowledge / News / Textiles / Chinese cotton purchase policy being misread: CCA
Chinese cotton purchase policy being misread: CCA
13
Feb '13
The China Cotton Association (CCA) has said that the Government’s policy of temporary purchase and storage of cotton is being misinterpreted.
 
Since 2011, the Chinese Government is effectively implementing its cotton purchase and storage policy to protect the interests of farmers, ensure market stability and ease price fluctuation pressure in international market, the CCA said.
 
However, the policy is being misinterpreted as an intention by the Chinese Government to control the world markets with its huge cotton inventory, the CCA added.
 
China is leader in both cotton production and consumption and hence the Government must protect farmers’ interests and ensure sufficient output.
 
The cotton reserves policy was launched as a contingency plan aimed at resolving periodic oversupply, but the current recession had unexpected long duration which forced the policy makers to continue with the storage plan, the CCA said on its website.
 
In 2012, China had bumper cotton harvest, while market remained depressed. As a result, since the beginning of new season in September 2012, the accumulated reserves touched 5.83 million tons by January 22, 2013, accounting for 85 percent of cotton production, which is a record.
 
The positive results of cotton policy are that growers receive higher price for their produce, and cotton prices avoid falling excessively. In 2012, cotton prices dropped by 20 percent compared to a sharp 42 percent drop witnessed in 2011, according to the CCA.
 

Fibre2fashion News Desk - China


Must ReadView All

Courtesy: European Commission/European Union

Textiles | On 26th May 2018

EU set to negotiate FTAs with Australia & New Zealand

The European Union is all set to begin negotiations for free trade...

US bans import of cotton goods from Turkmenistan

Textiles | On 26th May 2018

US bans import of cotton goods from Turkmenistan

The US Customs and Border Protection (CBP) has issued a Withhold...

FPCCI prepares report on Pakistan's export issues

Textiles | On 26th May 2018

FPCCI prepares report on Pakistan's export issues

Federation of Pakistan Chambers of Commerce and Industry (FPCCI)’s...

Interviews View All

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

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

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Top executives
Textile industry

Union budget 2018-19 will have positive impact on apparel industry

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Nitesh Mittal

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Ashok Desai
Bombay Textile Research Association

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

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Silvia Venturini Fendi
Fendi s.r.l

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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

Leave your Comments


May 2018

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

news category


Related Categories:

Advanced Search