With the growing area of cotton in China this year depleting by 2.9 percent in 2014 has resulted fall in cotton yield. The cotton yield has dropped by 2.2 percent year on year to 6.16 million tonnes, as per National Bureau of Statistics (NBS).

Nationwide, cotton land has declined 2.9 percent in 2014 from the previous year to 63.29 million mu, about 4.2 million hectares.

According to Lian Weiliang, deputy head of the National Development and Reform Commission, the relatively low profitability of cotton and the government's abolishment of its "temporary purchasing policy" to prop up prices are the main reasons for the diminution of arable cotton growing areas.

Lian has urged for a new purchase and sale mechanism for cotton as increasing export demands, the shrinking growing area will result in a big supply gap in the cotton market .The introduction of a "nationwide modern logistics system" for the material and boosted yields through better technology, to fill the demand-supply gap.

China will continue to remain a big consumer of cotton due to its large population, growing expendable income.