| Country seeks to
stabilize cotton output in 2009 China's agriculture
ministry said it is urging local authorities to persuade farmers
to maintain their cotton acreage after a survey showed they
intended to grow less of the fibre this year.
Farmers, in the largest growing country, are likely to plant
11.6% less cotton as planting started in the month of April
because a slowdown in textile exports has cut cotton demand and
caused prices to slide.
The government has expanded its subsidy on high-yield seeds
to farmers in 25 provinces instead of eight, but still this
year's production was being pressured by cheap imports and more
labour input. The Ministry will promote more high-yield cotton
and increase intensive plantings in more areas to help improve
returns for farmers.
To shore up domestic prices, Beijing has agreed to buy 2.72
million tonnes for state reserves from farmers, which accounts
for 36% of the domestic harvest last year.
China, the world's largest cotton consumer, also imported
46% less of the fibre in the first three months of the current
year as demand for textile products from the United States and
Europe, its major exporting destinations, has fallen amid the
global economic recession. China imported 14% less cotton in
2008 at 2.11 million tonnes, of which nearly half were from the
United States.
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