Ma Zhan Ping, Deputy Director, Economic and Trade Department of State Development and Reform Commission (SETC), has submitted a report regarding expected cotton output for this year, at the meeting of China International Cotton Textile Meeting held on November 23.
According to the report, under the present situation, the annual domestic cotton production is expected to be similar to that of last year and textile production and exports will continue to grow. Although, the cotton production-demand gap will further expand, market cotton price will be higher than last year.
The report also indicate that affected by RMB appreciation, reduced export tax rebates and increased labor costs, textile production and export growth will slow down in 2007. As, US cotton output this year will decline and prices of global agricultural products show an upward trend, 2007 annual cotton prices in domestic and international markets will be higher than the previous year.
Ma Zhan Ping points out that in light of the possible cotton shortage, the state must strengthen macro-control measures through new cotton purchasing and marketing, research a number of tax adjustment measures, including lowering cotton import tariff, to maintain a smooth market operation and promote the healthy development of cotton industry and textile industry.
According to a survey report of National Bureau of Statistics, this year's cotton acreage is expected to reach 82.21 million mu, an increase of 1.08 million mu over last year.
Fibre2fashion News Desk - China
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