China Cotton Association said on Friday that China planned to reduce state reserve cotton by half. Up to now, China has sold 2.5 million tons cotton. At the same time, China is the world's top importer ofcotton.
China planned to sold 4.5 million tons cotton before July. Before that, China had taken measures to support to promote migration positivity of farm households, accumulating about 10 million tons cotton in stock.
Though dealers worried that state reserve cotton would restrict cotton's imports, China Cotton Association expressed that the amount of import cotton paid in full was expected increase 7 times, reaching 757,000 tons.
China policy drives domestic cotton price high. Thus, Chinese textile companies seek for foreign supplies in a lower price.
Written by Nicolas Yang