China begins to unwind cotton stockpiling
31/03/2014
The world’s biggest user of cotton holds 60% of global cotton as part of a programme to support mills but which led to inflated prices. Mills were issued quotas but turned to higher quality cotton imports to support growing demand.
The moves could hit Indian and the US exporters, which have already seen shipments drop by 7% and 47% respectively in the first two months of this year.
The reserves corporation will require buyers to buy three tonnes of locally produced cotton stored in Xinjiang in exchange for each tonne of overseas fibre, according to a statement.
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