National Multi Sector Or Joint Efforts To Control Cotton Prices

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Reporters learned that the national development and Reform Commission will jointly finance ministry, the Ministry of agriculture, the General Administration of industry and Commerce and other seven ministries and commissions on Monday (September 27th) to convene the national cotton working teleconference to analyze the current cotton production and marketing situation and deploy the 2010 cotton work.

Multiple factors have led to a surge in cotton prices.

"This is the highest cotton price in more than 10 years since 1999 when the price of cotton was liberalized.

Cotton has risen several hundred yuan a day in recent days. "

A staff member of China Cotton Association told the Chengdu Commercial Daily reporter.

She said that due to the impact of the international financial crisis in 2008, the low cotton prices affected the cotton growers' enthusiasm for planting cotton, and the cotton planting area in the whole country decreased significantly.

After the financial crisis, the demand for cotton increased sharply, and there was a gap between cotton production and demand, which contributed to the rise of cotton prices.

According to the statistics of National Bureau of statistics, in 2008, the cotton planting area in China was 86 million 400 thousand mu, 2 million 400 thousand mu less than the same period last year, and the output of cotton was 7 million 500 thousand tons, a decrease of 120 thousand tons compared with that of the previous year.

As for the reasons for soaring cotton prices, Xu Wenying, vice president of China Textile Industry Association and President of China Cotton Textile Industry Association, said recently that the surge in foreign orders this year stimulated textile enterprises' demand for cotton, while domestic cotton production was decreasing, which led to a rise in cotton prices on a large scale.

Weather induced

An insider who asked not to be named told the Chengdu Business Daily that cotton speculation was also an important reason for the rise in cotton prices.

"The recent increase in cotton prices is far greater than that of cotton prices.

Mr. Ho said that because of the large amount of capital needed to purchase cotton and the profit margins of cotton yarn becoming smaller and smaller, some small textile enterprises were forced to turn to the field of chemical fiber and textile.

The state continued to sell cotton reserves.

China's cotton reserve management company said on the 25 day that it was planning to sell 20063.4 tons of reserve cotton on the same day, involving 12 warehouses in 7 provinces, which is the thirty-third time since August 10th that the reserve cotton has been selling cotton reserves.

Statistics show that between August 10th and September 21, the total amount of cotton reserves sold in the Central Cotton store was 520 thousand and 116 tons, accounting for 86.69% of the 600 thousand tons of the national cotton reserves. If the 2 tons sold on the 25 day were sold, the reserve cotton has already sold over 540 thousand tons of reserve cotton.

Reporters learned that the national development and Reform Commission will jointly hold the seven departments of the Ministry of finance, the Ministry of agriculture and the General Administration of industry and commerce, and hold a national teleconference on cotton work next Monday (September 27th) to analyze the current cotton production and marketing situation and deploy the 2010 cotton work.

A senior member of the cotton industry for many years said that according to his judgment, the main topic of the conference is to ensure the needs of cotton in the textile industry, safeguard the interests of the vast majority of cotton farmers, and combat malicious speculation of cotton.