Home / Knowledge / News / Textiles / China's monetary policy may impact local cotton industry
China's monetary policy may impact local cotton industry
31
Jul '13
China’s efforts to reduce the rush of bank loans through its latest policy initiatives could lead to unforeseen effects on the cotton market, according to industry analysts.
 
The move would also affect the imports of cotton as it would encourage the domestic textile mills of the country to import more foreign cotton, they add.
 
In June 2013, the People’s Bank of China announced its intention to tighten the monetary policy in order to achieve a more stable economic growth, a move aimed at curbing the risks of bank loans.
 
The move by the People’s Bank would have a direct impact on the cotton industry in China, as it would decrease the interest of domestic cotton textile mills in purchasing domestic cotton, and increase their interest in buying foreign cotton, as it would become cheaper to buy foreign cotton even after including tariffs.
 
The new policy already had an immediate impact on spinners who are reducing purchases from the state reserves, which require payment upon delivery, and expanding imports with 90-day letters of credit, the International Cotton Advisory Committee (ICAC) said in a recent statement.
 
Earlier this month, China announced that for import and export of cotton by the textile industry, tariff rate will be calculated on the basis of 1 US dollar = 6.1652 yuan for the month of August 2013.
 
Tariff on cotton imports by China for the month of July was calculated on the basis of 1 US dollar = 6.1677 yuan.
 

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Textiles | On 16th Oct 2021

China's economic growth reflects strong resilience, vitality: Li

Premier Li Keqiang has said China is capable and confident of...

Pic: Shutterstock

Apparel/Garments | On 16th Oct 2021

BGMEA urges Bangladesh govt to reskill & upskill RMG workers

The Bangladesh Garment Manufacturers and Exporters Association...

Pic: Shutterstock

Retail | On 16th Oct 2021

UK retail sales rises by 0.6% in Sep 2021; figure 5.6% in Sep 2020

Total UK retail sales rose by 0.6 per cent in September this year...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Next level is to inject new features:

Textile Industry, Head honchos

Textile Industry
Head honchos

Led by MMF, Indian apparel exports likely to double in next 3 years

Florian Heubrandner, Lenzing AG

Florian Heubrandner
Lenzing AG

Sustainable and eco-friendly fibres remain in the minority

Sanjay Jhunjhunwalla,

Sanjay Jhunjhunwalla

In the financial hub of eastern India, Kolkata, a humble production...

Chendhuran Sundar,

Chendhuran Sundar

Headquartered at Singapore, Crocodile is a global fashion and lifestyle...

Chini Chouhan,

Chini Chouhan

Founded by Chini Chouhan, her eponymous brand specialises in women's...

Jacques Prigneaux, EDANA

Jacques Prigneaux
EDANA

EDANA has been the leading global association and voice of the nonwovens...

 Natacha Defeche, Edana

Natacha Defeche
Edana

Since 1971, EDANA, the International association serving the nonwovens and ...

Sameer Sonkusale & Rachel Owyeung, Tufts University

Sameer Sonkusale & Rachel Owyeung
Tufts University

A team at the Tufts University in Massachusetts was recently in news for...

Ramya Rao & Kavea R Chavali, Kalaneca

Ramya Rao & Kavea R Chavali
Kalaneca

<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...

Shalini Sharma & Shweta Pundir Sharma, Six Yard Story

Shalini Sharma & Shweta Pundir Sharma
Six Yard Story

Six Yard Story is a premium artisanal brand with a focus to bring handloom ...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search