State owned companies hold majority of cotton quotas

03 Nov '09

2 min read

According to customs statistics, in September 2009, China imported 102,000 tons of cotton, a decline of 6.88 percent from the previous month, down 20.8 percent year on year. Import value reached US $149 million, a decline of 5.57 percent from the previous month, down 32.37 percent year on year.

The average price of cotton imports in September continued to rise. The average import price was $1,462 per ton, up 1.4 percent from the previous month, but down 24.6 percent year on year. From January to September this year, China totally imported 1.078 million tons of cotton, down 692,000 tons or a reduction of 39.1 percent year on year.

According to an announcement by the China Development and Reform Commission on October 14, China will continue to maintain import tariff quotas of major grain and cotton unchanged in 2010.

Import quotas of cotton will be 894,000 tons. Imports within these quotas will be imposed low tariff at about 1 percent, but once imports exceed the quotas, then the tariff will be increased substantially.

State-owned companies hold most of the quotas, accounting for 90 percent of wheat quotas, 60 percent of corn quotas, 50 percent of rice quota and 33 percent of cotton quotas.

Fibre2fashion News Desk - China

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