China mulls increased cotton quotas - sportstextiles: Lea SportsTextiles

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China mulls increased cotton quotas

04/01/2013
The Chinese government is considering extending its policies to allow more textile mills to import a tonne of cotton from overseas for every three tonnes of locally grown fibre they buy, to keep the industry competitive.

Currently, only a limited number of mills have been allocated import quotas, which allow them to purchase cotton at prices up to 40% less than domestic values, according to Reuters.

China began its cotton stockpiling programme in 2011 to support local farmers but the policy has sucked supplies out of the domestic market and pushed up prices.

Any increase could boost US cotton prices, as the country is the largest exporter of the fibre to China.

Related stories:

China begins to unwind cotton stockpiling 31/03/2014

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