Govt supports cotton cultivation

07 Mar '07

2 min read

Recently, the Ministry of Agriculture would provide subsidies to quality cotton varieties. It is reported that this year, China's central government has allocated 500 million yuan to support 40 million mu of cotton cultivation in the country (one hectare = 15 mu).

Meanwhile, the textile industry disclosed that policy makers have also entered into investigation about the subsidies to cotton growers, but it is not yet determined when the policy can be introduced. Nevertheless, it has finally begun to take shape, after the industry has been calling for the establishment of mechanisms to protect cotton production. It is good news to cotton industry and textile industry, particularly for enhancing the competitiveness of China's textile industry.

The importance of stability of cotton production in the country is self-evident. Cotton is the only major crop next to grains, for the farmers. China has more than 100 million cotton growers and in some regions, like Xinjiang, more than 30 percent of farmers' income is from cotton.

During '10th Five-Year Plan' period, textile industry registered a double-digit growth rate, cotton demand gap continued to expand and dependence on imported cotton increased. If there are ups and downs in China's cotton production, the vibration throughout the whole world cotton industry will be followed.

Experts sugget that China should make full use of allowed subsidy and 'green box' policy under WTO agreement to effectively protect cotton industry.

Fibre2fashion, News Desk - China

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