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Will Govt release additional cotton import quotas?
Jul '09
According to customs statistics, China's cotton imports reached 152,000 tons in May, a reduction of 89,000 tons or 36.8 percent year-on-year. From January to May, China's total imports registered 567,000 tons, less 464,000 tons or 45 percent from the same period last year.

Recently, there were rumors floating in the cotton markets saying that the state would further release about 300,000 tons of cotton import quotas. From the view of practical demand, many export-oriented textile enterprises need imported cotton; therefore, additional quotas will effectively address the problem of cotton shortage.

But it is reported that there is no official information on the matter, the National Development and Reform Commission and China Cotton Textile Industry Association have not claimed to release additional quotas. Experts aver that, release of cotton reserves or of import quotas can solve cotton related issues in time.

The Development and Reform Commission says that, the recent rebound in domestic market price reflects that cotton resources are tight in the market and there will be gap between supply and demand in the future.

It adds by saying that, the state will release part of cotton reserves in proper time, aiming to protect the market, meet the needs of the textile industry and stabilize cotton market, in accordance with the principle of proper supplies while not subduing market prices.

Fibre2fashion News Desk - China

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