China forced to launch new cotton subsidy policy

China is forced to launch a new cotton subsidy policy this year, to subsidize low-income groups and farmers through price fluctuations. The excessive amount of imported has reached 4 million tonnes along with the stockpiles which China started over the past three years to stabilize prices, after cotton prices fluctuated spectacularly between 2010 and 2011. The China’s current cotton reserve policy has upset domestic cotton prices.

The prices set for cotton by government have surged to a level much higher than international cotton prices even after the reserved cotton was released into the market resulting into limited profits by the Chinese cotton spinning industry due to high costs.

According to Chen Xiwen, a member of the Chinese People’s Political Consultative Conference, under the new policy the government will subsidize low-income consumers whenever a produce’s market price exceeds below government-set prices. The government will subsidize farmers when the market prices drop below government-set prices. The new policy details will be revealed soon as the round of cotton stockpiling this year is almost over.

The government has also decided to conduct a pilot scheme for the new policy which is likely to begin in the northwestern region of Xinjiang, one of the country’s main cotton production bases.

Recent Posts

Swisstulle advances dyeing efficiency with JigMaster

Swisstulle adopted JigMaster for its dyeing and finishing operations, especially for high-quality technical textiles used in fashion and automotive industries.

3 days ago

Birla Cellulose and Circ partner to scale textile recycling

Birla Cellulose, a leader under the Aditya Birla Group, has announced a long-term partnership with Circ, a U.S.-based textile recycling…

3 days ago

CARBIOS unveils enzymatically recycled polyester t-shirt

CARBIOS has collaborated with leading brands Patagonia, PUMA, Salomon etc. to create a groundbreaking polyester garment made entirely from textile…

3 days ago

Yangi launches sustainable fiber-based food tray

Yangi, renowned for its renewable packaging solutions, has launched a fiber-based food tray as a sustainable alternative to plastic trays…

3 days ago

Tarpaulife Project develops alternative to PVC-coated fabrics

The European Tarpaulife Project is working on polyolefin-coated fabrics, such as polyethylene, that can be manufactured to compete with PVC-coated…

3 days ago

Better Cotton to standardise measurements for cotton production

Better Cotton has joined the global non-profit alliance, Cascale, in a three-year project aimed at standardising LCA methods across the…

3 days ago