Good amount of cotton stocks in markets – Experts

Considering the weak response the state reserves auction is receiving from the textile sector, industry experts are of the opinion that there seems to be a good amount of cotton floating in the markets along with good inventories with the mills. The National Development and Reform Commission (NDRC) had announced release of an additional 1.523 million tons of national cotton reserves to meet the needs of textile enterprises in order to ensure supply and stabilize cotton market. But experts are of the opinion that, the state should have released the national cotton reserves earlier to prevent cotton prices from increasing too high, which would have not put pressure on the production costs of the textile mills. In order to prevent cotton prices from continued fall and protect interests of farmers, the state had procured 2.7 million tons of cotton in this year, which has greatly helped stabilize cotton prices in the markets. This had helped the prices to rise from the lowest level of 9500 Yuan per ton last year to current level of 13,000 Yuan per ton. In May, NDRC decided to release 1.5 million tons of national cotton reserves into the market. Read More..