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Cotton Classing Set to Match International Standards
Source: ctei Date: 2008-01-04
Three years ago at the request of the National Development and Reform Commission (NDRC), China’s cotton industry launched massive reforms to accommodate large bale cotton (220 – 225 kg) as opposed to the domestic standard, small bale cotton (80 kg). The reforms spelled out by the NDRC were for the cotton reserves, the railway sector and the Agricultural Development Bank to make preparations to adopt large bale cotton as the industry standard. The NDRC expects by 2010 for the industry to be ready to handle only large bale cotton. Starting September 2010, loans for cotton ginners to upgrade facilities for large bale cotton will be terminated. Additionally, small bale cotton will not be traded or delivered on the CNCE or ZCE. Nor will the railway sector be allowed to transport small bale cotton. Last, the Agricultural Development Bank will only be authorized to extend loans to facilities that are certified by the NDRC as active in HVI classing. All ginneries uncertified at this point will be closed. While the moves help bring China’s cotton industry in line with industry standards, they are also helping reduce ginning capacity which has been estimated to be as high as 18 to 20 million tons.
