As an export-oriented industry, the textile industry is greatly affected by the global financial crisis. In light of the domestic cotton price decline, the government kicked off a 300,000 MT cotton procurement program at a price of RMB13,400/MT in Xinjiang on Aug. 20. By the end of Aug., the government procured 81,300 MT cotton and the market price picked up to the state procurement price level.

With the worsening of the financial crisis, cotton price went south after cotton harvest. The government kicked off a 220,000 MT cotton procurement program at a price of RMB12,600/MT in Xinjiang on Oct. 21 and procured 200,000 MT by the end of Oct.

In early Nov., the government launched a 1 million MT cotton procurement program in the nation at a price of RMB12,600/MT and basically completed the procurement by early Dec. This helped cotton price to pick up after Nov. 20.

On Dec. 9, the government issued a 1.5 million MT cotton procurement plan. Altogether, the government’s cotton procurement plans add up to 2.72 million MT this year, accounting for 1/3 of the nation’s production.

The massive procurement plans, plus increasing loans to textile mills, are expected to promote cotton consumption and cotton price upturn.

List

News Briefs 1

State Cotton Procurement Conducive to Stable Cotton Price 2

Garment Producers Benefited from Low Cotton Price 3

Textile & Garment Consumption Increased in Nov. 5

Textile & Garment Exports in Nov. 7

Weather & Cotton Conditions (3, December -16, December) 9

Price Trends: 9