Home / Knowledge / News / Textiles / Govt to intervene & purchase cotton if prices fall further
Govt to intervene & purchase cotton if prices fall further
Oct '08
Authorities at all levels have reached an agreement that they will purchase new cotton from the farmers in time, if cotton price falls sharply after new cotton arrives in market, so as to ensure that the new season cotton price will remain at a relatively reasonable level.

Since the beginning of 2008, domestic cotton prices has continued to decline, due to multi-factors such as substantial fall in international market prices and also drop in demand from local enterprises.

According to China Cotton Association, inland purchase price of standard seed cotton averaged at 5.54 Yuan / kg in mid-October and averaged 5.12 Yuan / kg in Xinjiang, both down 0.08 Yuan/ kg, respectively, from the beginning of the year.

Chinese cotton price index (CC Index328) fell from 13,464 Yuan / ton on September 1 to 12,512 Yuan / ton on October 15, down by nearly 1000 Yuan per ton.

Due to continuing decline in prices, cotton-processing enterprises are more cautious while entering the market. On one hand, rising costs and low sales prices have compelled cotton growers to hold on to their stocks on expectations of higher prices, while on the other hand cotton processing companies are adopting a wait and watch attitude, due to which an impasse has emerged in the once vibrant cotton markets.

The peak selling season begins in mid-October, but sales in seed cotton market this year are very quiet. This is expected to seriously damage the interests of cotton growers which in turn may impact their initiative to grow cotton in the next season which will also be detrimental to the stability of China's cotton market.

Recently, National Development and Reform Commission, Ministry of Finance, Agricultural Development Bank of China and other departments have taken a decision to purchase cotton from Xinjiang.

The purchasing will be effected through public auctions at National Cotton Exchange, with the maximum purchase price tentatively set at 12,600 Yuan / ton (at Xinjiang warehouses) and provisional purchase quantity is planned to be 220,000 tons.

Fibre2fashion News Desk - China

Must ReadView All

Textiles | On 27th Oct 2016

Teijin Frontier develops Solotex RC lightweight fibre

Teijin Frontier Co. Ltd, fibre products converting company and part...

Tosha Hays addressing the conference. Courtesy: College of Family and Consumer Sciences, UGA

Textiles | On 27th Oct 2016

Industry experts discuss future of fabrics at UGA

Industry experts, researchers and military officials discussed the...

Courtesy: Global Denim Awards

Fashion | On 27th Oct 2016

Anbasja Blanken & Italian mill ITV Denim win GDA

Dutch designer Anbasja Blanken and Italian mill ITV Denim was the...

Interviews View All

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Eamonn Tighe
Nature Works LLC

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

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Silvia Venturini Fendi
Fendi s.r.l

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

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


Browse Our Archives


Advanced Search