On July 15 about 100 cotton and textile professionals gatheredin New York for a one-day conference titled, ‘A Dialog on China's Cotton and Textile Industry Evolution.' Liu Hua, General Counsel for the China National Cotton Reserve Corp. (CNCRC)provided some general guidelines and insight about CNCRC’s business development plans. China currently has a 163per cent stocks-to-use ratio of cotton and is estimated to have 63 per cent of the current world reserves. Huaadds, “The current state of affairs is abnormal. We are trying to reduce inventory but need more time. Consumption needs to be increased, as more and more farmers become city dwellers.
He went on to add the China does not want cotton production to decrease too quickly. And it will take at least three more years before China’s consumption use to ratios will improve.Hua said CNCRC will create a dedicated logistics company "in near future," which will oversee cotton storage and transportation. China currently relies heavily on railroads to get fibre from the production areas in the northwest to the mills in the east, but the intention is to increase the use of highways for better flexibility.
At the end of his presentation, Hua said CNCRC pledges to be more transparent and open in its operations.