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Related Keywords: China to end stockpiling program, cotton consumption, cotton prices, create jobs, fiber to be imported, invest billions of dollars, NDRC, store in state reserves, Subsidies, textile factories, U.S. Department of Agriculture, weak market price, XPCC

China has assured to end a costly stockpiling program that has artificially exaggerated cotton prices. The Xinjiang Production and Construction Corps (XPCC) reluctant to accept the current weak market price, has urged the government to buy part of its crop and store it in state reserves, said two trade sources with knowledge of the issue.

XPCC, also known as the army corps, or 'bingtuan', has become a sort of state within a state and gained a dominant role in industries such as cotton, where it employs about 200,000 mainly Han Chinese on some of Xinjiang's best land.

Related Keywords: cotton, Economy, Egypt, farmer, SMEs, spinning company, Subsidies, Textile Industry

Egypt's economic ministers takes a move to encourage domestic industries to purchase Egyptian cotton as well as support local farmers by giving approval to raise the subsidy for spinning companies (Private and state-run) to purchase abundant Egyptian cotton to become LE350 per quintal instead of LE200 ahead of harvest season in September. This was announced the ministry of, industry, trade and Small and Medium Enterprises (SMEs) in a statement on Tuesday.