Chinese Cotton Price–To Recover For Better Market

USDA believes that Chinese cotton policy will continue to advance in the market,which means interests balance will be kept between farmers and yarn suppliers, and huge domestic cotton stocks will be consumed with WTO commitments.
In 2013， Chinese economic policy stressed the decisive role for market in the allocation of resources. In order to let cotton prices get out of the control of government support and make it controlled by market，Chinese government announced the introduction of direct subsidies to cotton in Xinjiang in2014. In order to reduce market fluctuation, the government adopted the target price, which is lower than the price of purchasing and storage in 2012 and 2013 .This target price-based subsidies are only available to Xinjiang province even during the period of storage cotton prices decline.

From now on, support from Chinese government in cotton prices will be reduced. Cotton price in China may return to a level close to the historical average in the long term. Price gap in cotton between China and overseas can not be completely eliminated due to the long-term support by Chinese government. The minimum price maintain will directly limit budget expenditures for cotton subsidies. Therefore, the most way for China price policy to support cotton market is to help return to average from 2005-2010 .
As per the recovery of Chinese cotton market，Fil Control believes that the market of yarn textile industry，textile machinery industry as well as textile devices industry will creat more achievements.