By The End Of 7, China Will Sell 4 Million 500 Thousand Tons Of State Reserve Cotton.

China is the second largest cotton importer in the world. So far this year, China has sold 2 million 500 thousand tons of national reserve cotton. A trade organization said on Friday that it seems that China is ready to unload half of its national reserve cotton. According to a controversial policy to support cotton farmers, China reserves 10 million tons of cotton stocks. By the end of 7, China will sell 4 million 500 thousand tons of national cotton reserves. < /p >
< p > although traders are worried that the influx of national cotton reserves may reduce imports, the China Cotton Association said that by April, the total import tax on cotton imports had increased by nearly 7 times to 757 thousand tons a year ago, due to cheap overseas supply, Gao Fang, vice president of the China cotton flower Association, said at an industrial conference. < /p >
< p > China's cotton inventory policy drives domestic cotton prices to rise, forcing our country's "a target=" _blank "href=" //www.sjfzxm.com/ "> textile" /a "industry to seek cheap supply from overseas. Overseas cotton after paying import taxes is 40% cheaper than domestic cotton prices. Our officials have confirmed that in the next cotton season, the government will continue its cotton inventory policy to purchase domestic cotton at a price of 20400 yuan / ton. < /p >
< p > China Cotton Association believes that the national cotton reserve policy has put pressure on the domestic textile sector. The expensive domestic cotton has led to a sharp rise in their costs, damaging their cost competitiveness and causing some companies to cut production or close down. < /p >
< p > our government is studying ways to reduce the destructive power of prices, the NDRC official said. Gao Fang said that cotton production in China is estimated to reach 6 million 500 thousand tons this year, down 5% from a year ago, because farmers have reduced the cultivation of cotton. In 2012, China gained 6 million 840 thousand tons of cotton, up 3.8% from the same period last year. < /p >