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Cotton value-chain has capacity to affect GDP
Feb '10
Cotton is an important commodity relating to people's livelihood. Its industrial chain has the capacity to affect farmers, workers, country's exports and finally even the national GDP.

The primary task of the cotton textile sector in 2010 is to maintain stable economic growth and it will be undoubtedly be difficult for textile enterprises that have just started recovery, if cotton prices remain strong and repeatedly record highs.

Therefore, the state will introduce more policies to ensure stability of cotton prices, thereby ensuring sound development of the textile industry and to generate sound export recovery at the earliest.

Meanwhile, imported cotton in large quantities is most likely to arrive in Chinese ports in February; increased supply will bring some deterrent effects on cotton price, which will also eliminate concerns about declining cotton area.

The industry believes that cotton price which displayed an inertia impulse at the beginning of the year, however is expected to face repression, due to the large quantity of imported cotton expected to land in next two months.

Experts are of the opinion that cotton prices will be focused around at the level of 15,000 Yuan per ton for the rest of the year.

Fibre2fashion News Desk - China

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