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    China'S Cotton Output Has Declined Sharply

    2014/8/4 11:28:00 20

    ChinaCottonYield

    < p > at present, policymakers do not specify how to keep cotton growing in central and eastern regions, because the new policy covers only the main cotton producing areas such as Xinjiang in the northwest.

    Cotton production in China is expected to drop to about 5 million tons next year, down from 6 million 600 thousand tons forecast this year.

    Chinese officials say they will try a direct subsidy system for cotton farmers in Xinjiang and replace the previous cotton purchase and storage projects supported by government funds.

    However, the government has not indicated what measures will be taken to the cotton farmers in the inland areas and whether the direct subsidy system will be extended to the inland areas.

    < /p >


    < p > this means that if you are not a cotton grower in < a href= "http://www.91se91.com/news/index_c.asp" > Xinjiang < /a > area, you'd better think about whether to grow grain or other crops because the new policy is directed at cotton growers in Xinjiang.

    < /p >


    Cotton futures fell 1.8% to 62.87 cents per pound on Thursday (P > ICE12). Cotton futures this week or recorded the largest weekly decline in more than 50 years, with signs that global demand for cotton will grow less than supply.

    < /p >


    < p > a Beijing commodity consulting company said that although mainland officials may also encourage farmers to grow cotton and provide part of the a href= "http://www.91se91.com/news/index_c.asp" > subsidy < /a >, at least for now, from the perspective of the central government, there is no need to subsidize cotton farmers outside Xinjiang.

    < /p >


    < p > he said that the government stopped the cotton purchase and storage this year, which has actually reduced the sowing area.

    < /p >


    < p > the data released by China cotton net show that China's cotton < a href= "http://www.91se91.com/news/index_c.asp" > planting area < /a > this year is 12.5% to 4 million 200 thousand hectares less than that of last year.

    < /p >


    Last year, half of the 6 million 800 thousand metric tons of cotton produced by the Chinese government came from Xinjiang, P.

    < /p >


    P also predicted that China's cotton imports will also decline this year, despite the decline in domestic production because the government is auctioning 10 million tons of cotton reserves.

    < /p >


    According to the data released by the US Department of agriculture (P), China's cotton stocks account for more than half of world cotton inventories.

    < /p >


    From P last September 1st to July 28th this year, China has sold 2 million 200 thousand tons of cotton stocks.

    < /p >


    < p > data show that China imported cotton in the first half of this year by a sharp reduction of 42% to 1 million 400 thousand tons.

    China controls cotton imports through import quotas.

    < /p >


    < p > the Chinese government said this month that it would raise 20 billion yuan to help Xinjiang develop the textile industry.

    < /p >

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