Though the Government, in conjunction with the Ministry of Agriculture, has begun picking new cotton from this month, the reaction of Chinese textile enterprises has, as always, been bittersweet.
They opine that though new cotton will solve the problem of raw material shortage to an extent, the unit price of this cotton will undoubtedly be too high. Also, its quality may fail to meet the standards required for production.
A total of 38 cotton enterprises in Sinkiang Province will purchase the new cotton, whose unit price will range from 5.50 to 6.00 yuan per kg. As such, the Government of Jiangsu Province will give a loan of 4.1 billion yuan to enterprises so that they can buy the new cotton.
However, because of a decrease in the plantation area and the prevailing bad weather conditions, it is estimated that the output of new cotton will go down by 19.5 percent.
The same reasons may pull down new cotton output in Henan Province by around 20 percent. The unit price of new cotton is pegged at 5.60 yuan per kg, which is higher than last year's price.
Fibre2fashion News Desk - China
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