China : Heavy Cotton Shortage Likely In 2003

According to the latest forecast by the Cotton and Ramie Bureau of the National Federation of Supply and Marketing Cooperatives (CRBNFSMC) the cotton shortage in China this year is expected to be about 600,000 tons.

The domestic output of cotton this year is estimated at 5.65 million tons, far from the estimated domestic demand of 6.6 million tons, said Shi Jianwei, head of the Cotton and Ramie Bureau.

CRBNFSMC also predicted that the state cotton reserves would reach a five-year-low of 1.74 million tons.

The country has to import more cotton to make up for the shortages, Shi said.

Cotton prices on the world market are likely to go up if China imports cotton in large quantities, according to industrial officials.

Cotton prices on both domestic and international markets will be at a high level in the 2003 cotton year, Shi predicted.