Home / Knowledge / News / Textiles / Subsidy on Xinjiang cotton receives mix response
Subsidy on Xinjiang cotton receives mix response
02
Jul '08
In order to overcome the problem of rising cost of Xinjiang cotton due to skyrocketing oil prices, the Ministry of Finance has decided to provide appropriate subsidies after the State Development and Reform Commission increased the price of petrol and diesel to 1,000 yuan per ton.

A survey was conducted regarding higher transport price caused by hike in oil prices, in which enterprises from Shandong, Henan, Hebei, Anhui, Zhejiang, Jiangsu, Hunan, Hubei Provinces participated. Nearly 52 percent enterprises believe that, impact of rise in price is going to affect the textile industry largely.

However, 32 percent entrepreneurs think the impact is not so big, whereas remaining 16 percent think that although its not going to affect immensely, they still use pre-inventories at present, so they can accept the price increase. They plan to share increased cost together with cotton enterprises at a later stage, while some entrepreneurs think they will directly pass on cost pressure to cotton enterprises.

There are mixed opinions on Xinjiang cotton subsidies as the enterprises think the policy brings little benefit to them. As cotton stock is held for a long time, these subsidies are only enough to pay bank interest.

For the new cotton, price of Xinjiang cotton is likely to be pushed higher due to subsidies. The biggest beneficiaries are farmers, while cotton enterprises and spinning units will not be benefited from the policy.

However, recently some companies have started preparations for procurement of Xinjiang cotton due to the lucrative gain after price subsidies.

Fibre2fashion News Desk - China


Must ReadView All

Apparel/Garments | On 26th Jun 2017

GSTN registration reopens

E-commerce operators and TDS (tax deducted at source) deductors can...

Textiles | On 26th Jun 2017

Expedite release of ROSL pending claims: TEA to Centre

The Tiruppur Exporters' Association (TEA) has again urged Union...

Textiles | On 26th Jun 2017

'Export promotion schemes to continue under GST regime'

The export promotion schemes will continue under GST regime, said...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Eamonn Tighe
Nature Works LLC

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

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

news category


Related Categories:
July 2017

July 2017

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

SUBSCRIBE


Browse Our Archives

GO


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