The State Has Introduced A New Policy On Cotton Reserves.

Cotton is an important raw material for the cotton textile industry. It accounts for about 70% of the cost of cotton yarn production. The price of domestic cotton has been higher than that of the international market and its quality has been declining for a long time, resulting in a decline in the competitiveness of China's cotton textile industry and accelerating the pfer of cotton spinning capacity to overseas.

In 2015, cotton textiles accounted for 30.3% of the total export volume of the textile industry.

The volume dropped by 8% compared with the same period last year, and cotton yarn exports dropped by 19.2% over the same period.

In 2015, China's cotton consumption was only 6 million 750 thousand tons, which was 4 million 250 thousand tons less than that in 2010.

The decline in cotton demand in cotton textile industry is not conducive to protecting the interests of cotton farmers.

In order to provide effective supply of raw materials for textile enterprises, improve the competitiveness of cotton textile enterprises, produce effective demand, and give the market clear expectations, the state has formulated new cotton reserves.

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Planned cotton reserves are normalized, prices are linked to international and domestic market prices, and weekly price adjustments are made.

Textile enterprises hope

The price, quality, structure and outgoing service of cotton can be considered in the delivery process.

In view of the relative concerns about the weight and quality of cotton reserves, enterprises require re examination of all the weight and quality indicators of the stored cotton, otherwise, it will not be conducive to the purchase decisions of enterprises, and will also affect the quality claims of spinning and weaving enterprises.

Relevant departments of the state are studying the specific measures for implementation of the round out policy of reserve cotton weight and quality inspection according to the enterprise's reflection and specific circumstances, so as to make the work of storing cotton more suitable for market demand.