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Chinese textile producers short of cotton

www.chinanews.cn 2006-03-12 16:10:40

(Source: Xinhua)

Workers produce winter jackets at a textile factory in the eastern
Chinese city of Nanjing. Thousands of Chinese textile producers are under
pressure from rising costs and insufficient supplies of raw cotton
materials. (Photo: AFP/File)

Mar.12 - With China's cotton market shortfall is expected to reach 4
million tons this year, thousands of textile producers are under pressure
from rising costs and insufficient supplies of raw cotton materials.
Chen Junliang, chairman of the Jiangsu Cotton & Fiber Group in east
China's Jiangsu Province said that textile producers have been scrambling
for cotton purchase quotas, which are usually inclined to big companies.
Du Min, a research fellow with the Rural Economic Research Center under
the Ministry of Agriculture said that traditional cotton growing areas in
the east China region went down dramatically. The demand-supply gap has
been widening in the past six years.
Statistics with the China Textile Association suggested that China's
cotton growing area measured 5.12 million ha. in 2005, down 10 percent
from the previous year. The total cotton yield amounted to 5.76 million
tons last year.
According to experts with the Rural Economic Research Center, the
domestic demand for cotton has been growing at 10 percent since 1999,
while cotton plantation areas have dropped by 14.2 percent to 4.59
million ha. in 2004.
The country imported 3 billion U.S. dollars of cotton in 2004, accounting
for one fourth of the world's total cotton import trade. Unlike America,
China's cotton industry, the livelihood of some 100 to 150 million
Chinese rural population, is not subsidized by the government.

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