In order to ensure supply of cotton in domestic markets, the Chinese Cotton Business Market has issued 0.3 million tons of cotton reserved by the Government so that it is sold via auction.
The Government decided to sell this amount because of rising price of the commodity and the increasing shortage of cotton in the country. The 0.3 million tons include 0.18 million tons of cotton reserved by China Cotton Group in 1995, '96 and '97 and 0.12 million tons reserved by China Reserve-Cotton Administration in 2001 and '03.
Further, the Government has decided that if cotton prices continue to soar, it will add to supply of the commodity. In addition to this, the government has stipulated that buyers willing to take part in the auction must be Chinese textile enterprises that use cotton in its production.
Fibre2fashion News Desk - China
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