March 2, 2012

China raises 2012 cotton stockpile price by over US$3,000

China will increase the buying price of cotton for reserves by RMB600/tonne (US$95.24), or 3%, from 2011 to RMB20,400/tonne (US$3,238.15) for this year, the China Cotton Association said on Thursday (Mar 1).

The move is expected to protect cotton farmers' interest and stabilise cotton production and supply to the market.

China's cotton planting area was likely to fall 6.1% on-year to 5.09 million ha in 2012 as the sharp fall in the price of unginned cotton had discouraged cotton farmers, the Cotton Research Institute under the Chinese Academy of Agricultural Sciences said in a report earlier in February.