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The government will surely stop the national reserve policyThe government will surely stop the national reserve policy
News added on 03-Sep-2013 in Cotton News

According to officers from CCA and NDRC (National Develop and Reform Comm.), in the 2014/2015 cotton season,  The Gov. will surely stop the national reserve policy. Price spread between local and foreign cotton will get to a natural and acceptable level. It is to say, local price may drop to RMB16000-17000/ton, while it is currently RMB 19000/ton.

"We believe it is rumor that new reserve auctions will be carried out in Sep.", said by vice general secretary of CCA. "Textile factories already prepared materials for more than 2 months during the auction ended by end of Jul. And new crop will get into the market in Sep.  No any meeting till now to discuss any new auction"

There is no evidence showed that new processing trade quota released or will be released. It seems the only release of processing trade quota is before and in Mar. Total qty not more than 700000 tons. Qty already used till end of  Jul. is 470000 tons. By middle of Aug, factories were required to turn back any processing trade quota they can not use off or they can not ensure to use off by end of the year.

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