The textile industry in China achieved growth in the first half of the year, though at a slower pace compared to last year, the National Bureau of Statistics said.
The textile sector grew 7.1 percent in the first half of this year, compared to the 12.2 percent growth in the first half of 2010.
China is the largest producer of cotton, cashmere, flax and silk, as well as the biggest manufacturer and exporter of textiles in the world.
"Textile exports are gradually declining every year, so domestic demand is important for the future growth of the industry.
A fall in domestic demand is one of the reasons why the growth slowed down," Geng Shuping, secretary general of Textile Association of Hebei Province, told the Global Times Wednesday.
In 2010, the price of pure cotton fabric rose approximately 100 percent, and that of silk fabric expanded more than 30 percent, according to Research In China, a research firm.
Geng said the price of raw material cotton has declined from around 36,000 yuan ($5,565) per ton in 2010 to 27,000 yuan per ton in July this year.
At the end of 2010, China had over 32,000 textile enterprises, a majority of which were engaged in textile fabric business, according to Research In China.
"The price of raw materials of textile products is not stable, and textile factories are hesitant to buy more raw materials," Geng said, noting that if a textile factory purchased the raw material last year with the price of nearly 36,000 yuan per ton, the factory would run a loss if it sells products at a lower price this year due to the reduced cost of raw materials.
"Textile factories don't want to buy raw material cotton when the price is falling, because they are afraid of further decline in the price," a cotton planter named Sun Shuguang in Tangshan, Hebei Province, told the Global Times Wednesday.
Sun said he has to sell all the cotton he has grown irrespective of the price. He said he could make a net profit of around 7,500 yuan per hectare in one year on an average but "the income this year will be less than last year."
According to the National Development and Reform Commission, the growth of textile industry will continue to slow down in the second half of this year.
