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Cotton acreage lower than previous estimates
18
Sep '09
The current period is one of the most critical phases for cotton growth, but continuous overcast and rainy weather in main cotton-producing regions in East China may result in lower yields, which will result in a late harvesting and also a delay in sending cotton to the markets.

In addition, decrease in cultivated cotton area is also larger than expected. It is learned from current situation that decline in plantation area in all cotton producing regions is larger than previous estimates of various domestic institutions.

The main reasons were that cotton price was too low last year and production cost was high in the last cotton year, resulting in significantly reduced earnings. At the same time, farmers were receiving remunerative prices for grains.

The rate of decline in cotton cultivated area in Hebei, Henan, Shanxi, Hubei, Jiangsu represented 7.1 percent, 8.7 percent, 18.3 percent, 12.3 percent and 11 percent, respectively, while Northern Xinjiang and Southern Xinjiang decreased by 25 percent and 10 percent, respectively.

Cotton production is suffering a double misfortune due to a decline in cotton acreage and continued rainy weather. China's cotton production is expected to be below 7 million tons in 2009/10.

Fibre2fashion News Desk - China

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