According to news from Xinhua News Agency, the output of cotton this year home and abroad will reduce. In consequence, the market will face shortness of cotton and the price of cotton will definitely increase, which places textile enterprises into a difficult position.
Two thirds of cotton output in China comes from Xinjiang. The output of cotton in 2009 reduced by 21.3% because of natural disasters. However, the situation this year is not optimistic, either. Due to the disasters like heavy rain and snow, the prospective output of cotton this year need be reassessed.
Researcher from Ministry of Commerce, Zhao Yumin claims that the demand of cotton will surpass the supply because of the reduction of cotton output and the recovery of textile enterprises in China.
The survey conducted by China National Textile and Apparel Council shows that some small sized companies have halted taking orders when the price of cotton rises from March.
The China Cotton Association has already warned that the price and sales volume of cotton-made products should be watched closely. The exports of garment and output of cotton in this year are under their supervision, too. Import quota will be increased and other measures will be taken to balance the demand and supply.
