China'S Cotton Reserve Program Has Been Driving Up Global Cotton Prices.

< p > China is the largest importer of cotton in the world. The industry said on Friday that China is considering changing its active cotton reserve program. China's cotton reserve program has been driving up global cotton prices, forcing the purchase of cotton production shirts and trousers' a target= "_blank" href= "//www.sjfzxm.com/" > textile < /a > factories suffer heavy losses.

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< p > to protect the rural economy, Beijing has bought about 10 million tons of cotton from farmers in accordance with the purchase and storage plan, which is 40% above the global benchmark price.

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< p > however, the government and the National Cotton Association have acknowledged that China's policy is a heavy blow to China's domestic textile enterprises. The domestic cotton prices are expensive, increasing the cost of factories, weakening their competitiveness in competition with other countries' exporters, causing some factories to reduce production or close down.

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Gao Fang, vice president of China Cotton Association, said at an industry conference: "this is not our intention. When we formulated policies, we did not intend to affect textile mills to such a large extent."

We did not expect this policy to be implemented for such a long time.

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< p > she said: "we have reached a consensus that the Chinese market needs a better policy."

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< p > for the global cotton market, China's planning prospects are a key factor, because China's cotton reserves hold about 60% of global cotton stocks.

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< p > a Chinese development and Reform Commission official said Thursday that the Chinese government is considering reducing the price distortions of reserve cotton.

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