The Tariff Commission of the State Council lowered import tariffs on several commodities, including cotton, starting June 1, in order to curb rising prices of agricultural products, easing inflationary pressure.
The industry believes that, the adjustment of slide-tax has little effect on cotton price.
Experts explain that, this reduction of slide-tax only applies to cotton imports with high price. This will bring import cost higher than 11.397 yuan per kilo gram down to 0-213 yuan per ton. But, domestic textile enterprises may consider consumption of foreign cotton, only if the foreign per ton cotton prices are atleast 200-300 yuan lower than domestic yield.
At present, there has no significant difference between domestic and international cotton prices and local enterprises seem to prefer domestic cotton.
Besides, textile enterprises use high-quality cotton to produce high value-added products. Thus, product mix is becoming popular trend, since it enhances profitability.
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