China’s total cotton production this year is expected to increase by 5.8 per cent year on year, despite a significant drop in production in the drought-hit Yangtze River region, according to an industry report.
Total cotton production nationwide is expected to reach 6.138 million tonnes in 2022, of which 5.634 million tonnes is expected to be produced in the Xinjiang Uygur autonomous region, according to the China Cotton Market Monitoring System report.
The survey was conducted nationwide from late October to early November by China’s Ministry of Agriculture and the China National Cotton Reserves Corporation.
Northwest China’s Gansu province and Xinjiang are set to see cotton production increase by 22.8 per cent and 7.2 per cent year on year, respectively, the report added.
But production in the southern Yangtze River Basin is expected to decline by 8.6 per cent year on year to 152,000 tonnes due to the severe drought that hit the region over the summer, coupled with a higher level of pest infestation.
The Yellow River Basin in northern China is also expected to report a 7.1 per cent year on year decline to 308,000 tonnes following periodic droughts and heavy rain that hit cotton growth.
Xinjiang is expected to continue to account for over 91 per cent of the country’s total production due to higher temperatures than in previous years, coupled with further increases in the planted area.
Last year, Xinjiang produced almost 20 per cent of the world’s cotton, but this year’s deliveries have slowed due to labour shortages caused by strict coronavirus controls and lower-than-expected cotton prices affecting farmers’ confidence in selling.
The average Chinese cotton delivery price is down by 44.6 per cent year on year, with cotton stocks set to reach 8.467 million tonnes, up 1.8 per cent year on year, according to data released by the China Cotton Association on Tuesday.
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Xinjiang, China’s top cotton producer
Cotton stocks in China are likely to experience further pressure, with demand weakening in October due to a slowing global economy, a sluggish textile industry and global inflation.
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The United States’ Uygur Forced Labour Prevention Act, which came into effect in June, has also dented the cotton market.
The act has effectively blocked American imports of all products wholly or partially sourced from Xinjiang, where China has been accused of committing rights abuses such as forced labour against Uygur Muslims and other minorities – allegations that Beijing has repeatedly denied.
Source : ChinaMacroEconomy