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Reducing cotton acreage will lead to rise in imports
Aug '10
Over the past three years, with continuous rise of wheat, corn, rice and other grain prices, cotton acreage has retreated step by step. Cotton planted area has reduced by about 14 million Mu in the last two years (One hectare equals 15 Chinese Mu).

Although cotton price has surged all the way to 18,000 Yuan / ton, since the end of last year, it has not activated farmer's enthusiasm in cotton production and cotton acreage is expected to reduce further in the future.

Industry experts say that Henan, which was the main cotton producing area in China, in the past, planted cotton on around 10 million Mu, but now the cotton under cultivations area in the province has nosedived to just 2-3 million Mu.

Experts point out that, the state provides more subsidies to grains and various grain subsidies amount to 60 to 70 Yuan per Mu, while cotton receives seed subsidy amounting to only 15 Yuan per Mu.

This has induced farmers to go in for cultivation of food grains rather than cotton. A significant reduction in cotton acreage will definitely boost China's demand for foreign cotton and imports of the same are likely to rise in the future.

Fibre2fashion News Desk - China

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