China sets cotton target price at19,800 yuan for 2014

China scrapping its contentious cotton stockpiling policy this year has moved to direct subsidies for farmers. Under this policy, the farmers can sell cotton at market prices and will receive subsidies from the government if market prices fall below the target price. Also cotton target price for 2014 is being set making it convenient for farmers to sell cotton in market.

Economic planning body of China on Saturday has gone ahead to set cotton target for 2014 at 19,800 Yuan ($3,200) per tonne for cotton. The decision to set target price was taken based on production cost and basic returns, the National Development and Reform Commission said.

The stockpiling policy pushed up domestic cotton prices much higher than global prices, making it cheaper for Chinese mills to import cotton grown abroad than to buy domestic produce.

According to the latest report of the Economist Intelligence Unit (EIU), cotton consumption growth will remain relatively firm in Asia this fiscal year, while its global consumption will increase a bit in 2014-15,

Further, they expect the new policy to have an impact on demand in the medium term, but not to affect their current demand forecasts.

Recent Posts

HandMadeStone, CleanKore to advance denim production

HandMadeStone and CleanKore have formed a partnership to promote sustainable practices throughout denim manufacturing, from fibre production to final finishing.

4 days ago

ICT Mumbai opens sustainable textile lab with Archroma

ICT, Mumbai, has opened its newly renovated sustainable textile laboratory, upgraded with support from Archroma India Pvt. Ltd. under its…

4 days ago

Kiabi joins Denim Deal to boost circular denim practices in France

Denim Deal, focused on standardizing circular methods in denim production, announced that French retailer Kiabi has joined the group.

4 days ago

UBC scientists create cleaner method to produce rayon fibers

A research team at the UBC has created a cleaner way to make rayon that could reduce chemical use and…

5 days ago

Oritain expands leather traceability for ethical sourcing

Oritain, a global expert in origin verification, has extended its scientific tracing methods to leather, a material often harder to…

5 days ago

Aunde, PreZero to build polyester recycling plant

Aunde has formed a partnership with PreZero to set up a plant that will recycle polyester-based textile waste into new,…

5 days ago