Extra long staple (ELS) cotton consumption is rising in China because of the huge investment made to enhance capacities, informed industry sources.
According to Cotton International report, Chinese consumption of US Pima and Egyptian ELS varieties has surged more than 139 percent.
Supima, a promotional organization of the American Pima cotton growers stated that China has been the largest buyer of Pima cotton in 2005-06.
India and China consume around 65 percent of ELS cotton, which is about 2,500,000 bales per year.
On an average each year, India consumes around 800,000 bales of ELS cotton and expected to reach 1,200,000 bales by 2010.
India produces only 500,000 bales and meets with the demand by importing from the US and Egypt.
According to sources, China has agreed to purchase 185,500 bales (170 kg each) of Pima cotton exceeding Pakistani purchase record of 182,600 bales in 2004-05.
China imports around 150,000 bales and produces around 400,000 bales mainly in Xinjiang region.
A Ramani, cotton analyst and Joint Secretary, South India Cotton Association (SICA), said, "This may not have any impact in the near term. But, in the long-run, increasing production of ELS cotton in the country is the only solution. The necessity for higher domestic ELS crop is being felt more now."
Chief adviser of SIMA-CD&RA, T V Karivaradharaaju said, "If we have a proper action plan, we will be able to bridge the demand-supply gap."
Hybrid extra long staple (ELS) cotton 'SIMA HB-3' will be promoted by SIMA-CD&RA in Karnataka, Madhya Pradesh and Tamil Nadu.
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