China's domestic cotton supply-demand gap for the 2014 season is about 2 million tons
According to relevant forecasts, in the 2014 season (September 2014 to August 2015), China's textile cotton demand will stabilize and rebound. The domestic cotton supply-demand gap for the new season is expected to be about 2 million tons, an increase of about 1 million tons over the previous season.
This was learned by reporters on the 25th at the national cotton work teleconference jointly held by eight departments: the National Development and Reform Commission, the Ministry of Finance, the Ministry of Agriculture, the Ministry of Industry and Information Technology, the State Administration for Industry and Commerce, the General Administration of Quality Supervision, Inspection and Quarantine, the All China Federation of Supply and Marketing Cooperatives and the Agricultural Development Bank of China.
Lian Weiliang, deputy director of the National Development and Reform Commission, said at the meeting that on the production side, according to a survey by the China Cotton Association, the national cotton planting area this year is expected to be 63.4 million mu, down 9.4% from the previous year, and output is expected to be about 6.5 million tons, a decrease of 500,000 tons from the previous year. Among them, the Yangtze River basin and the Huang-Huai-Hai basin saw relatively large declines in area due to rising production costs, declining comparative benefits of cotton planting and the cancellation of the temporary purchase and storage policy.
On the demand side, after cotton prices in the new season are formed by the market, the price difference between domestic and foreign cotton is expected to narrow, which will help curb fiber substitution and reduce cotton yarn imports, and cotton demand will also recover somewhat. Cotton demand in the new season is expected to be about 8.5 million tons, an increase of about 500,000 tons over the previous season.
It is understood that in the 2013 cotton season, affected by the international and domestic economic situation, China's textile growth slowed and cotton demand decreased; international cotton supply exceeded demand, prices fell, and the price difference between domestic and foreign cotton remained at a relatively high level. By implementing the temporary purchase and storage policy, releasing reserve cotton at appropriate times and reasonably arranging cotton imports, the state maintained smooth market operation. At the beginning of this year, the state launched the pilot reform of the target price for cotton in Xinjiang, canceled the temporary purchase and storage policy nationwide, realized that new cotton prices are mainly formed by the market, and gradually built a new cotton purchase and sales system.
Lian Weiliang required that reform measures be implemented, a new cotton purchase and sales system be explored, cotton market and quality supervision be strengthened, financial institutions be coordinated to guarantee the supply of funds for cotton purchasing, and large cotton enterprises be guided to play a demonstrative and leading role. Research should be accelerated on issuing a national modern cotton logistics development plan, agricultural technology extension should be strengthened, cotton yield per unit area should be further raised, textile competitiveness should be consolidated and enhanced, and market guidance and regulation should be done well.