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Profits begin to thin for Xinjiang cotton growers
17
Feb '14
Profits have begun to thin for farmers growing cotton in China’s Xinjiang region, according to a recent survey carried out by the Xinjiang Uygur Autonomous Region Development and Reform Commission.
 
For 20 consecutive years, Xinjiang has produced the largest quantity of cotton in China, and farmers have gained considerably from the crop. But, the recent survey shows that with the rise in production costs, the profit margins of farmers have started to dip.
 
In 2013, the average per acre cost of producing cotton in Xinjiang was 2,115.25 yuan, showing an increase of 325.19 yuan or 18.17 percent year-on-year. Accordingly, the net profit decreased by 21.36 percent year-on-year to 530.27 yuan per mu (1 mu = 0.067 hectares).
 
The decrease in net profit was despite an increase in average selling price by 12.32 percent year-on-year to 1,003.16 yuan per 50 kg.
 
According to analysts, the substantial increase in costs of production has led to a decline in income for cotton farmers in Xinjiang.
 
Hence, in order to stabilize cotton production, Xinjiang cotton growers need to increase their scale of operation and embrace mechanization.
 
In 2013, more than 500 million mu of area under cotton was mechanically harvested by Corps, accounting for more than 50 percent of cotton acreage, but the remaining area still relies on manual picking of cotton.
 
Xinjiang is a major cotton production base in China with high-quality cotton producing areas. The region accounts for one-third of China’s total cotton acreage, but it contributes only one-sixth of national output.
 

Fibre2fashion News Desk - India

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