China launches temporary cotton reserve
China has launched a temporary cotton reserve in an effort to stabilise cotton production and protect farmers’ interests, according to one of the country’s economic planners.
China National Cotton Reserves Corporation will buy cotton for the temporary reserve as of 8 September at a price of $3,101 per ton this year, the National Development and Reform Commission said in a statement.
The move aims to stabilise expectations of cotton production, sales and consumer enterprises, and prevent production volatility due to big price fluctuations, the statement said.
The purchase will apply to the country’s 13 major cotton production regions including Xinjiang Uygur autonomous region when spot prices of newly produced cotton are below the purchase price, the statement said.
