Sign in | Join free

China to build cotton reserve system to boost production

China to build cotton reserve system to boost production Source: fibre2fashion news desk - india
Date: 03-04-2011
Visits: 249
Very Poor

The Chinese government announced Thursday that it will initiate a cotton purchasing and reserve program starting this fall to boost domestic cotton production.

To build the reserve, the government plans to purchase standard cotton at 19,800 yuan (3,018 U.S. dollars) per tonne from Sept. 1 this year to March 31 next year, according to a statement from the National Development and Reform Commission, the country's top economic planner.

According to the program jointly established by eight ministries and institutions, China National Cotton Reserves Corporation will be responsible for purchasing cotton during the seven-month period when market cotton prices fall below the state purchase price for five working days. On the other hand, the company can sell cotton reserves when necessary.

The statement came just before Chinese farmers begin this year's cotton planting, in an effort to help them avoid cotton price fluctuations and stabilize output.

The latest survey from the China Cotton Association showed that due to rising costs and lower economic efficiency, China's cotton growth acreage is estimated to increase only 5.1 percent year on year to 5.4 million hectares this year, down from the previous estimation of 9.8 percent in January.

China had occasionally conducted temporary cotton purchase and reserve programs in the country's major cotton belt since 1999, but this is the first time that a purchase price is announced before the program starts.

The early announcement of the program and purchase price helps farmers and cotton companies set production plans and protect the interests of cotton producers, said the statement.

Cotton futures at the Zhengzhou Commodity Exchange dropped 1.65 percent to 28,400 yuan per tonne on Thursday.

like 405 Unlike 45
Users Comments
No comments to display
Are you sure you want to delete this comment.
Add your comment
User Name:
Email: Will not be published
Rate This article:
Maximum 3500 characters
Your name
Your email address
Your friend email address
  • /images/ourservices/125-600/pricetrend.jpg
  • /images/ourservices/125-600/product.jpg
  • /images/ourservices/125-600/videos.jpg
Suntex Asia Limited
32367 Users
have already joined Shouldn't you?
Full registration will provide you access to all our free services. It takes only one minute and it is free Go here
Quick registration (it's free)
Accesss to some of our free services
Select membership
Full Name
User Name
Enter the code
(Note: If you can't read the letters, reload the page to generate a new one.)
terms and conditions
Members Login
Already registered
Forgot your password
golden fees
Enter your e-mail address
Choose your room