The government of China has increased the minimum support price (MSP) of cotton to 19,800 Yuan / ton for the new cotton season (2011-12).
The reason stated for the hike is the increase in costs of cotton production, due to a rise in prices of agricultural materials and labor costs.
In 2011 alone, ex-factory price of urea has risen 28.9 percent year on year, seed prices have gone up by 10 percent and labour costs too have increased by around 15-25 percent year on year.
Fibre2fashion News Desk - China
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