China'S Cotton Import Quota Was Raised To 2 Million Tons In 2011.

Comprehensive media reported on December 15th, analysts said on Wednesday that the market generally expected that China's cotton import quotas in 2011 would be raised by at least 2 million tons, that is, three times the official import quotas.

Such a substantial increase in import quotas is the government's re-use of administrative measures to intervene in the market. In 2011, cotton import quotas are expected to rise from 894 thousand tons to 2 million 700 thousand tons. Recently, the shortage of supply caused by climate causes cotton prices to rise sharply.

China will control cotton imports annually through tariff quotas and additional cotton tariff quotas based on sliding duties.

The tariff is 1% within the quota of 894 thousand tons, and the 5%-40% quota tax is imposed on the imported cotton. The actual implementation is 5%-8%.

Soaring cotton prices have increased inflationary pressures, prompting the government to ratification of extra 1 million 800 thousand tons of cotton imports in May.

Industry analysts say demand remains strong, and China expects to approve the same number of import quotas or more next year.

Beijing Orient Agribusiness Consultant Ltd. Ma Wenfeng said, "the quota for next year will not be higher than this year," he expects the total amount of cotton import quotas will reach 2 million 800 thousand tons in 2011.

China Cotton Trading (search cotton) online week said that the additional quota of import quotas is expected to exceed 2 million tons.

On Wednesday, the China Cotton Association declined to comment on the matter, saying it was only a private sector estimate.

However, Yang Zhaoliang, Deputy Secretary General of the China Cotton Association, said the quotas for cotton imports will not be abolished.

The Ministry of Finance said on Tuesday that since January 1, 2011, a certain amount of cotton was continued to impose a slippery tax on a certain amount of cotton outside the tariff quota, and the tax rate remained unchanged.

The government said in September this year that official cotton import quotas will remain at 894 thousand tons next year.