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Insufficient cotton production heightens import
23
Jun '08
Cotton production of Hubei Province is less than half of the local consumption for the commodity. Reasons have been attributed to adjustment of domestic policy made in the past 10 years which has reduced the area of cultivation from 9.50 million mus to about 6 million mus. Subsequently, the yield of lint cotton also plummeted to about 400,000 tons.

On the industrial front, rapid development has considerably increased the cotton consumption of the textile sector. For instance, cotton output in 2007 was until then the largest produce of the century, however, it only accounted for 55 percent of the total consumption of the local industry.

Besides, Hubei Province owns about 8 million textile spindles and has plans to accommodate an additional two million textile spindles by 2009. This remarkable expansion in the manufacturing units, inevitable calls for greater requirement of raw material. However, considering the fact that cotton lint output has been on a consistent decline for a while, China will have to depend heavily on imports for meeting the domestic demands.

What makes the situation more alarming is that a large number of developed countries like the US are concentrating more on growing biological energy and farm produces like corn. This will again aggravate the situation of receding area of cotton plantation and thereby increase the chances for countries like China (largest consumer of US cotton) to expand imports from other countries.

Fibre2fashion News Desk - China

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