China Has Been Breathing For Consideration Of Issuing New Cotton Import Quota

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< p > a source said that China is considering issuing new "a href=" //www.sjfzxm.com/news/index_q.asp "cotton import quotas < /a >, while auctioning some state-owned cotton stocks.

The report quoted traders and analysts as saying that the aim was to curb the hidden crisis in the textile industry, and that domestic textile enterprises in China could also get a breathing space.

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The P report quoted the source as saying that this highly anticipated proposal that allows textile companies to buy more imported cotton is still under consideration.

If the proposal is approved, according to the new import quota, textile enterprises need to purchase three tons of cotton from the state reserve cotton per ton of cotton imported.

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< p > reported that China's national development and Reform Commission announced in December 28th last year that it would auction part of the state-owned "a href=" //www.sjfzxm.com/news/index_c.asp "cotton inventory < /a >, but did not disclose further details.

China has set up a strategic cotton reserve in 2011 to support cotton farmers.

But such policies have hurt the textile enterprises, because they can not buy Cotton in the domestic market, and they can only rely on imports.

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< p > Reuters also believes that China's auction of state-owned cotton stocks and the issuance of new import quotas can solve the two major problems faced by the government. That is, after two years of strategic storage, the government can sell some cotton stocks, and at the same time make the domestic textile enterprises get the urgent breathing space.

The tight supply of cotton in China and the high price of cotton make these enterprises in a difficult position.

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P, an analyst at China International Futures Limited, told Reuters that this is a compromise of the government, which helps to quell the complaint of < a href= "//www.sjfzxm.com/news/index_f.asp" > textile enterprises < /a >.

"The Chinese government has helped improve the situation of cotton farmers, and now we have to start making textile companies continue to be competitive," Peter Egli, Plexus Cotton's risk management director, said.

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