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Imperative to release cotton reserves stocks
01
Jun '09
A comparison between supply and demand in domestic cotton market shows that cotton production touched 7.79 million tons, while imports amounted to 1.5 million tons and level of stocks stood at 4,290,000 tons, including those in national reserves.

From May to September 2009, China's consumption should at least be 3.5 million tons calculated at the rate of 700,000 tons minimum monthly consumption. Survey data indicates that inventories of domestic cotton were 1.36 million tons at the end of April.

Considering inventories as a necessity and not considering it for the purpose of calculation, then the gap is 2.14 million tons, which will need to be filled up till the beginning of the new cotton season in the last quarter of this year.

Cotton experts are of the opinion that it is imperative that the state release the cotton stocks from the national reserves as early as possible to avoid a position of artificial shortage in the country, despite holding such huge amount of stocks.

Fibre2fashion News Desk - China


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