Spring cotton planting is near conclusion. 61.4% of cotton fields have been planted in the Yangtse River reaches, 59.4% of which down by transplanting. 44.5% of cotton fields have been planted in the Yellow River reaches, 28.7% of which done by transplanting. Planting has come to an end in the Northwest, but some fields have to be replanted due to freeze.
Cotton production faces a smaller planted acreage and substantial cost increase this year. Owing to global grain crisis, the government urges increasing grain acreage, likely to subdue cotton acreage, specially in Xinjiang.
Meanwhile, cotton production cost is estimated to reach RMB25,680/ha. this year, 35.25% more than last year. Of others, fertilizer cost is predicted to expand 86.7% this year. In the Northwest, the cost of normal irrigation and dripping is estimated to reach RMB1,500/ha. and RMB2,250/ha. Besides, labor cost is predicted to grow more than 10%.
BOABC holds that rising cotton production cost tends to push up cotton price. If the government controls cotton price to the present low level, farmers will cut cotton acreage during summer cotton planting. Consequently, cotton production may shrink this year.
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