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Cotton production not optimistic for 2009
Apr '09
Cotton production is facing a grim situation in the next cotton season and does not seem to be optimistic in any way. Low prices are playing havoc with the toils of the farmer, which is resulting in frustration and loss of confidence.

According to pre-warning and monitoring data of Chinese cotton production, cotton plantation area is expected to fall by 20.9 percent according to a survey conducted in January and has further fallen to 21.9 percent in a survey done in March.

From amongst regions, cotton crop is projected to fall by 26.5 and 30.8 percent in Yangtze River region, by 23.6 and 29.1 percent in Yellow River region and 6.6 and 4.8 percent in north-west region as per January and March survey respectively.

The main reason for the marginal drop in cotton planting intentions in the northwest area is due to the fact that the first state procurement schemes amounting to 1.22 million tons began from here, due to which farmers had cleared stocks well in time.

The main reasons that are responsible for falling sentiments on production of cotton are that the farmers suffered huge revenue losses due to low prices. Prices fell by 23.2 percent and in turn revenues plunged by 99.6 percent.

The second bigger reason is that prices of grains have shot up and the realization difference between price of cotton and grains is very wide leading to an intention to grow grains rather than cotton in order to garner better returns.

Fibre2fashion News Desk - China

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