China Has Completely Become A Net Importer Of Cotton.

It must be shocking to know that China has the largest cotton growing area in the world.

On the one hand, China's demand for cotton has increased year by year. The data from Eastern Ireland show that, from 2000 to now, the output of cotton has increased from 4417 kilotons to 7664 kilotons in 2011, while consumption has increased from 5023 kilotons to 11163 kilotons, and the gap between supply and demand has been increasing. In addition, the decline of cotton planting income has also become the fundamental reason for restricting the further increase of cotton production. The data of the NDRC show that the ratio of wheat and cotton planting in 2008 is 1:6.2, and the benefit of rice and cotton planting is 1:7.9 and 1:7.5 respectively than that of 1:5.62009.

The huge differences between supply and demand will naturally lead to a shortage of cotton.

What is even more worrying is that the US agriculture act 1933 established the cotton subsidy policy. In 2002, the agricultural bill further established export subsidies and restrictive subsidies, and also set up anti crisis subsidies for cotton farmers and sales subsidies for us cotton.

From 1999 to 2003, the US government subsidized cotton rate up to 89%, that is to say, the subsidy for producing 100 yuan cotton was 89 yuan; from 2001 to 2002, the rate of subsidy in the United States was over 129%.

China's subsidy to cotton is only 15 yuan per mu, which is a drop in the bucket compared with that in the United States.

"The emergence of cotton today is also a necessity to some extent."

"In the short term, the possibility of China's cotton fall is not too great, but in the long run, the cotton crisis is indeed great and there is a possibility of repeating the mistakes of soybeans," Ma Wenfeng, an analyst with the eastern Agribusiness Consulting firm, said in an interview with reporters.