CHINA, the world’s second-largest cotton grower, is expected to produce 5.5 million tons of the fiber in the upcoming season, an industry group said yesterday, slightly below an earlier forecast but not a large enough drop to boost imports.
The China Cotton Association (CCA) had previously predicted a crop of 5.86 million tons for the harvest beginning in October.
The new number would represent a 15 percent drop compared with the 6.5 million tons produced in 2014/15, according to the association’s data.
A smaller crop will likely do little to support global prices, with imports expected to be restricted by government quotas and sufficient domestic supply.
In addition to the upcoming crop, China’s State reserves hold an estimated 11 million tons of the fiber, which the government is hoping to gradually sell on to the market in coming years.
Extreme heat in recent weeks in China’s top growing region, Xinjiang, had led to talk of potential crop damage but the association said the impact was countered by less pest and disease pressure on the crop this year.
Most of the decline in output will come from the lower planted area across China, which is estimated to fall by 24 percent, it said, following a monthly survey of farmers.
A cut in government support for cotton in some parts of the country encouraged many growers in eastern provinces to switch to more profitable alternatives such as corn.(SD-Agencies)
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