The entry-exit inspection and quarantine bureau of the city of Fuzhou, Fujian province reported cotton imports of 19,760 tons during Jan-July period, an increase of 1,137 percent over the same period last year. Total value of the cotton was $43.4 million, an increase of 793 percent, or a record high.
One bureau representative said the sharp increase was mainly caused by a price gap between foreign and domestic cotton prices, along with increasing demand. The price of domestic cotton is often above 19,000 yuan ($3,080) a ton, or about 4,000-5,000 yuan higher than that of imported cotton. In textile manufacturing, raw cotton accounts for 70 percent of the total cost. So, if the price differential is above 4,000 yuan a ton, producers can no longer afford the domestic stuff.
To cope with jump in imports, the bureau decided to simplify its procedures and shorten the inspection time, thereby cutting the cost. It also reminded enterprises of a new CCTA clause in contracts and the need to report on time if the imports are damaged.
Edited by Lin Hong and Roger Bradshaw