The Demand Gap Will Expand This Year

Domestic cotton production is expected to fall 7 million tons this year’s, cotton production and demand gap will expand.

 In 2009, the domestic cotton production is expected to decline, at 700 million tons, with the gradual improvement in exports of textile production, cotton production and demand gap has been expanded; Meanwhile, cotton prices in general will be higher than the previous year, but a large number of listing a number of new cotton the main producing areas are still downward pressure on prices.

It is understood that this year’s cotton pre-Miao Qing in general is better, but in late August to early September the Yangtze River basin consecutive disastrous weather, some impact on the growth of cotton. Ministry of Agriculture, the latest survey data show, this year’s cotton acreage of about 7592 acres, down about 1,000 mu, a reduction of over 10%.

National Development and Reform Commission Zhang Xiaoqiang, deputy director said, at present, the national cotton crop is growing basically the same as the previous year, if the recent weather conditions are normal, and strengthen the latter part of management, is expected to have a good harvest, the national cotton output is expected to 700 million tons. From the National Bureau of Statistics data show that in 2008, national cotton acreage 8640 acres, down 240 million mu; cotton output of 7.5 million tons, up has decreased by 12 million tons.

Prices, Zhang Xiaoqiang said that from the look throughout the year, due to cut production of cotton, cotton production and demand gap in the expansion of cotton farmers a higher price expectations, cotton prices in general are expected to be higher than the previous year. However, after the listing of large concentrations of new cotton, the domestic market, cotton prices are still downward pressure, especially in the higher concentration of Xinjiang’s cotton market, downward pressure on cotton prices higher.

Zhang Xiaoqiang said that the next step, the National Development and Reform Commission will further strengthen macro-control and maintain the basic stability of cotton prices and the market running smoothly. On the one hand, do a good job of cotton reserves control plans. If a large number of new cotton market fell over when the cotton price, timely manner through open bidding part of the cotton purchasing and storage. Such as market cotton prices rose too quickly, then throw in time savings, stable cotton prices to ensure the needs of textile and cotton.

At the meeting, reporters learned at the same time, from next year, the government will intensify efforts to promote small packet of cotton and its processing enterprises out of the market. From September 2010, the railway authorities to stop packets of cotton transport, the Agricultural Development Bank to stop providing loans to small packets of cotton processing enterprises, cancel cotton packet processing of cotton processing enterprises eligible.