On November 13, the All-China Federation of Supply and Marketing Cooperatives (AFSMC) issued an emergency circular, requiring the supply and marketing cooperatives to quickly solve the problems regarding cotton-purchasing funds and to initiatively avoid risks.
Cotton procuring price would be based on 5-5.2 yuan per kg for standard seed cotton as proposed by China Cotton Association, according to the circular.
It is understood that the supply and marketing cooperative system has been the main procuring force in domestic cotton procurement market. In 2005, the total cotton purchased by the cotton cooperative system accounted for 60 percent of the total cotton procurement in the whole country.
The circular stated that 2006 had a bumper crop. Currently cotton procurement was in full swing.
As of October 20, the cotton marketing cooperative system purchased 1.08 million tons of cotton, an increase of 370,000 tons from last year's same period. Xinjiang Uygur Autonomous Region supply and marketing cooperatives purchased 543,000 tons cotton.
The whole nation purchased about 2.1 million tons of cotton, accounting for about one-third of the total output.
Fibre2fashion, News Desk - China
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