For a long time the cotton purchase and distribution in domestic market was done under the State plan and only operated by the National Supply and Marketing Cooperative.
Then, in 1998, the State Council issued 'Decision of Further Reform on Cotton Circulating System'. It put forward the idea of building up a new system in rationalizing cotton resources, mainly depending on market mechanism and with the macro control from the state. Cotton circulation realm appeared to be a little relaxed since 1999.
In 2001, the State Council promulgated 'Opinions of Further Reform on Cotton Circulating System', setting the conception in cotton circulation reform of first to open, second to decentralize, the third to enhance, and an industrialized operation would be followed. Till then, the new cotton circulation system was basically established.
Currently there are 8000 firms in the market who possess cotton-procuring qualifications. But according to incomplete statistics from the Cotton Association, cotton-procuring companies are actually about 18,000.
ON Sept 28, 2006, China held a nationwide videophone meeting on review of 2005 cotton production, analysis of new year' cotton situation and the arrangement of 2006 cotton production.
The meeting reinforced that the reform in cotton circulation system should be further deepened, and cotton marketing system should be further improved.
Government would make more efforts in attracting investment to support the development of local cotton production and increase cotton productivity and quality.
Meanwhile relevant government departments would severely strike against illegal activities in cotton business.
Fibre2fashion, News Desk - China
marketing@alchempro.com
