Labor costs are escalating in Xinjiang Province, where there is a shortage of workers to pick the 2008 cotton crop. A survey of conditions in Hutubi County, the largest single cotton-producing county in Xinjiang, reveals that picking costs have soared from 1.5 to 2.0 yuan per kilogram of picked seed cotton -- lunches are also being provided to workers. Locally recruited laborers such as students are being paid these wages, while workers recruited from outside Xinjiang are being paid 1.2 yuan per kilogram of picked seed cotton plus three meals per day, accommodations and transportation to and from Xinjiang.
Cotton growers and the PCC face these much higher picking costs at a time when seed cotton prices are depressed. At 5.2 to 5.4 yuan per kilogram for seed cotton picking costs can represent up to 37% of the selling price. China's growing shortage of cheap labor is making it increasingly difficult for the Xinjiang cotton industry to attract sufficient labor for cotton harvesting. The number of migrating workers has been inadequate, leading to increased recruitment of more expensive local pickers.
