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China's cotton production likely to decline in new season
29
Aug '13
The total production of cotton in China is likely to fall by about 8.6 percent year-on-year to 6.78 million tons in the new season which begins on September 1, 2013, according to the China Cotton Association (CCA).
 
Since July this year, most of the cotton growing areas in the country had less suitable weather conditions, including floods and drought in different parts, which adversely affected the growth of cotton plants, the association said.
 
On the other hand, China’s 2013 cotton consumption situation is still not optimistic, as majority of medium and large cotton spinning enterprises have reduced the proportion of cotton to avoid risks.
 
Moreover, the chances of small and micro textile enterprises shutting down their operations has significantly increased in the current situation.
 
Meanwhile, the implementation of the Government’s temporary purchase and storage policy for consecutive years has brought great pressure on safe custody of cotton reserves.
 
The current State Reserve cotton stocks have reached record levels, but the Government is yet to convene a meeting of relevant departments to sort out issues related to storage of cotton.
 
Various stakeholders are yet to agree on giving subsidies to farmers, in place of the Government’s cotton purchase and storage policy, and the relevant departments are hoping to find a better solution.
 

Fibre2fashion News Desk - India


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