Can 1 Million 100 Thousand Tons Of Lint On The Market Be Solved In The Near Future?

The director of a ten thousand garment factory in Houjie, Dongguan, Guangdong, is worried.

He received a list of 3 million foreign garments recently, but the plant lacks raw materials. "I reckon it requires 60 tons of cloth raw materials, which is very tight." In May 26th, he was looking for cloth everywhere, he told me.

Its manufacturers have imported cotton yarn from Pakistan and India in large quantities since last year, but recently India has announced that it will stop exporting and Pakistan has to increase export tariffs, which has led the factory to find new sources of cotton yarn. Although there are still cotton yarn in the country, the price is very high. Usually, the price rises every few days, and sometimes it rises once a day.

This garment factory is a microcosm of the price of cotton yarn and clothing that has been rising since the second half of last year. According to the information from the cotton information network, the cotton price weighted index in May 26th this year was 17323, up 35% from the same period last year, up about 15% from the beginning of this year.

According to the National Bureau of statistics and the Cotton Research Institute of the Academy of Agricultural Sciences, 2010 cotton planting area decreased by 2-3% compared with last year. And because of the low temperature in April and the late planting of cotton, the annual harvest is still difficult to ascertain. In the face of tight cotton situation, the state recently announced an increase of 800 thousand tons of cotton import quotas, bringing the total import quotas to around 2 million 700 thousand tons. The state reserve cotton is also expected to put in 300 thousand tons, so that 1 million 100 thousand tons of lint have been put into operation recently.

The author is informed that the decision-making level is studying new price control measures and has targeted ways to raise prices of some commodities.