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    Malawi Cotton Price Rises And Worries

    2011/11/21 9:35:00 17

    Recently, the reporter learned from our business office in Mawlawi, Mawlawi

    cotton

    The volume of planting is expected to double.

    But in the same period, investment banks

    Goldman Sachs

    The world's cotton production has soared and U.S. stocks will pick up.

    Continued

    To suppress cotton prices in 2012.


    Malawi will use cotton as the fourth largest source of foreign exchange earnings after tobacco, tea and sugar cane, and is expected to increase its planting capacity even after the introduction of policies to encourage cotton production.

    However, in 2012 cotton prices will predict the downward trend, so that Mawlawi should be happy to worry about?


    Cotton cultivation in Malawi is expected to double.


    Hu Yujie, the economic and Commercial Counsellor of the Embassy in Malawi, first introduced the overall situation of Malawi agriculture for journalists. "Agriculture is a pillar industry in Malawi. In 2010, agricultural output value was about 1 billion 120 million US dollars, accounting for 30.1% of GDP. The main agricultural products were corn, cassava, sweet potato, peanut, dried beans, tobacco, tea, cotton and so on."


    The annual output of the horse government in the December 2011 annual budget is expected to be 1 billion 600 million Ke watts (about 10 million 600 thousand US dollars), which means that horse cotton production and sales will increase significantly.


    The Mawlawi administration advocated the pformation of the agricultural economy from the main source of foreign exchange income, tobacco to cotton industry, and as a leading product to expand the agricultural market.

    The initiative involved 50 million cotton growers, with an area of 60 thousand hectares, representing an increase of 200% and 300% over last year.


    At present, the cotton planting is mainly based on small farmers, concentrated in Chikwawa and Nsanje, with a total annual output of 50 thousand tons.


    The enthusiasm of Malawi farmers to grow cotton is undoubtedly due to soaring global demand and high prices in the first quarter of 2011.

    The Malawi Cotton Development Fund's report supports this point: "Malawi cotton growers will benefit from this year as international cotton prices soar to a record $2 / pound."


    Over the same period, China's cotton imports continue to rise and demand is rising year by year. Cotton has a large consumer market in China.

    China's cotton production is far from meeting the continuous growth of China's textile industry and other factors. China has imported cotton for a long time.

    In 2010, 17 million tons of China's cotton supply and demand gap needed to be settled through imports, which also created considerable export market space for Malawi.


    Malawi exports are expected to grow by 60%


    Malawi National Bureau of statistics data show that in the first half of this year, Malawi total exports amounted to 93 billion 700 million grams of watts (about 620 million U.S. dollars), an increase of 60.8% over the same period last year; total imports of 179 billion watts (1 billion 200 million U. S. dollars), an increase of 26% over the same period last year.


    When it comes to Malawi exports, agriculture has to be mentioned.

    Hu Yujie counselor pointed out: "agricultural exports are 85% of the total export volume of the horse, and tobacco exports are the main source of horse foreign exchange earnings.

    Meanwhile, agriculture and food security will become one of the key areas of Malawi's national economic development in the next five years.


    To meet the needs of sales, the tobacco sales season will be extended to the end of November this year. With the improvement of product quality, Malawi tobacco's rejection rate from overseas buyers will be reduced to 45% from 90% at the beginning of this year.

    There is still room for a rebound in the price of tobacco this season, and the total revenue is expected to reach US $300 million by the end of the quarter.


    At present, Mawlawi imports mainly from the southern African development community, with an import volume of US $430 million, and imports from China and India to the Far East for us $180 million, and imports from the EU countries to US $140 million.

    The top five countries and regions in Malawi export are South Africa, India, China, the United Arab Emirates and Hongkong, China.


    In response to the bilateral economic and trade situation between China and Malawi, Hu Yujie counselor said that since the establishment of diplomatic ties between China and Malaysia for three years, bilateral friendly cooperation in various fields has been deepened, and bilateral trade and investment have shown a rapid development trend, bringing bilateral relations to a new height.

    In 2010, bilateral trade totaled 112 million US dollars, an increase of 36.1% over the same period last year. The main products of China's exports to Malaysia were textiles, clothing, shoes and mechanical and electrical products. Its imports were mainly tobacco, cotton, tea, coffee, spices and timber.


    Exports are inseparable from pportation. However, recently, oil prices and oil prices and the influence of the depreciation of the market have been rising.

    Hu Yujie counselor reminded Chinese Enterprises: "investing in Malawi should make full use of local market research and make perfect risk response plans.

    Pay attention to the impact of fuel price increase on pportation costs and commodity prices. "


    According to the data released by the Mawlawi Energy Administration in November, 380 grams of gasoline per liter (US $2.28), diesel 360 litres per liter (US $2.16), kerosene 171 Litchi (1.02 US dollars) per liter, respectively, rose 31%, 38% and 10% respectively.


    The sharp rise in fuel prices will directly affect the rise in pport prices, which will lead to a full price rise. Malawi's future inflation will be even more severe.


    Yu Jie Hu


    The counselor of the Chinese Embassy in the Malawi embassy was appointed as the three Secretary of the Chinese business office in the United Kingdom; the general manager and senior economist of China Medical Insurance International Development Company; the Chinese Embassy in Israel; the business consul of the Chinese Embassy in Nigeria; the Consul General of the Chinese Consulate General in Nigeria; the counselor of the Chinese Embassy in the embassy.

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