China: Cotton Prices To Rise In 2008
26 February 2008 China’s cotton prices are expected to rise this year, with the purchase price of cotton at harvest time forecast to be higher than at the end of last year, according to Asia Pulse.
Thanks to the impact of supply/demand relations and price trend on the international market, cotton prices will still maintain an upward trend this year.
The price of seed cotton stood at six yuan/kg in the September-December period of 2007, one yuan or 20% higher than the average price of five yuan in the previous year, said Prof. Mao Shuchun of the Cotton Institute of the Chinese Academy of Agricultural Sciences.
The output value of major cotton products increased 12.5% and income went up 10.4%.
The country’s three major cotton production areas saw varied output value and income. Northwest China achieved the highest growth to 14.5% and 26.3% in output value and income, respectively, followed by the Yellow River area with increases of 10.3% percent and 4.3%, and the Yangtze River area, up 11.1% and 0.6%.
Mao forecast that China’s cotton yarn will reach 22 million tons in 2008, leaving a cotton need of 14.50 million tons.
China’s Ministry of Agriculture says the country’s cotton-growing acreage increased 1.72% year-on-year, with cotton output expected to reach historic high of 7 million tons in 2007.
The ministry also points out that production still remains in shortfall.
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