March 5, 2012
China to lift cotton procurement price
With the goal to avoid a slump in local cotton acreage and protect farmers' interests, China will increase its state procurement price for cotton this year by 3%, the country's top economic planner said Thursday (Mar 1).
The government will pay cotton farmers RMB20,400 (US$3,243) per tonne this year for State reserves in 13 provinces and regions such as Jiangxi, Hunan and Xinjiang, up RMB600 (US$95.09) per tonne from last year, the National Development and Reform Commission said in a statement.
China National Cotton Reserves Corp (CNCRC) will start purchasing cotton when market prices fall below the State procurement price for five consecutive days, from September 2012 to March 2013, the statement said.
China is the world's largest importer of cotton. Cotton imports grew by 18.6% to 3.36 million tonnes last year, with India and the US as the main sources, customs data showed, the newspaper said.