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Govt announces procuring of cotton 3 times in current season

17
Nov '08
In order to help farmers clear their over loaded warehouses from stocks of cotton from this season the government has announced procuring cotton from markets and farmers three times in the current cotton season. This is being done with a dual purpose of stabilizing the cotton markets and in turn also help the farmers clear their stocks.

The first announcement was made on August 19, 2008, when the state decided to procure 150,000 tons of cotton from Xinjiang province which is considered the cotton bowl of the country and produces nearly 25 percent of all cotton grown in China.

Once again on October 16, the Chinese government decided to purchase 220,000 tons of more cotton from the open market at a price of 12,600 Yuan per ton, but 800 Yuan down from the price paid in August.

Subsequently once again on October 29, the government announced the purchase of 1 million tons of the 2008 crop at a price of 126,000 Yuan per ton. Out of all the cotton purchases committed to by the government it has bought 182,400 tons till date.

Fibre2fashion News Desk - China


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