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Cotton sale in Sinkinag takes a slow stride
Jun '08
Sinkiang Province of China is presently faced with a dampened sales market which still has about one million tons of cotton lying unsold. It accounts for about 45.5 percent of the total volume of cotton purchased and this means that dealers are likely to head for a loss this year.

The major reasons behind this downfall in consumption is that earlier, cotton reserves of Chinese textile enterprises kept production running for about 50 days but now manufacturers prefer to buy cotton only when needed and stock raw materials sufficient just for 15 days.

Moreover, imported cheap cotton which has been flooding the markets in China is also bringing about greater risks for enterprises in Sinkiang Province.

Although there are a few cotton buyers from the inland provinces, the overall sale of cotton has still remained grim. Besides, the mounting problems faced by the textile enterprises in the country are also having a direct impact on the sale of cotton in Sinkiang Province.

The Central Government has been requested to intervene and extend its full support to the cotton industry of Sinkiang Province in order to ensure complete market stability.

Fibre2fashion News Desk - China

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