ItΆs already challenging enough to plant, nurture and harvest a good cotton crop, given the marketΆs volatility, the cost and availability of inputs, and the constant threat of inclement weather. When farmers get through that process with a good harvest, itΆs doubly frustrating to have the efforts hindered by other factors, such as available facilities to process the cotton and a reliable logistics infrastructure to transport the fiber where it needs to go.
Unfortunately, that is the situation in western China right now, according to a story published by the Xinhua News Agency. Cotton growers in the Xinjiang Uygur Autonomous Region have already sold 1.2 million tonnes of cotton through October, representing an increase of almost 250% compared to the previous year, but inventories continue to build for several reasons. In addition to a lack of processing facilities and dependable railway transportation to move the fiber, demand from spinning mills and textile manufacturers is lukewarm.
Approximately one-third of ChinaΆs cotton production comes from Xinjiang, which is estimated to produce 3.4 million tonnes of cotton this year, representing a gain of 17.4%from the previous year. About 60%of this seasonΆs cotton has been harvested, according to the report.