Cotton output of China's Xinjiang may rise this year

05 Sep '12

2 min read

The production of cotton in China’s Xinjiang region is likely to increase by four percent this year. This would, in turn, further put pressure on global cotton prices.

Since China is the world’s largest cotton producer, importer and consumer, the increase in cotton output will mean that its cotton imports will decline, while domestic cotton stocks will increase.

Xinjiang Uygur Autonomous Region is the largest cotton producing region in China, contributing around 50 percent of the country’s total cotton output.

According to estimates, Xinjiang’s cotton production is likely to be around 3.2 million tons during the cotton year beginning August 1, 2012, which would be a rise of nearly four percent.

As per USDA estimates, China’s overall cotton production in the current marketing year will touch 6.76 million tons, slightly more than the 6.6 million tons output achieved in previous marketing season.

Last year, China began stockpiling cotton for national reserves in order to guarantee stable income to cotton growers. As a result, the country’s cotton stock touched 3.2 million tons, supposed to be the highest in the world.

The national cotton reserves policy, along with restrictions on cotton imports, resulted in the prices of domestic cotton to be much higher than international prices, adversely affecting Chinese textile enterprises.

Fibre2fashion News Desk - China

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