China Will Increase Cotton Import Quota And Put In Reserve Cotton.

The Chinese Cotton Association said in a statement Friday that the government is preparing to put in 600 thousand tons of cotton reserves and plans to increase cotton.

The association did not say how much it increased, but insiders say it could be 1 million tons.

The association said that so far this year, the government has approved 3 million 600 thousand tons of import quota.

The cabinet said Friday that the Chinese cabinet has approved additional quotas and plans to put in 600000 tons of cotton to reduce cotton prices.

Last month announced 800 thousand tons of import quotas, slightly easing domestic demand. Due to bad weather this year, tight supply of goods drove cotton prices to new heights.

China's cotton index shows that on Friday, China

In late May, the benchmark contract in Zhengzhou hit a record high of 18340 yuan / ton, and has since come down.

Large textile enterprises have enough cotton stocks to last for about 6 months.

If more natural disasters do not occur, the cotton harvest this year may still be good, although the planting time is delayed due to bad weather.

The Cotton Association said that if new cotton picking time was postponed, besides other policies, the government was prepared to expand imports and put in reserve cotton.