China’s total cotton production in 2022 is expected to increase by five per cent year on year. Northwest China’s Gansu province and Xinjiang are set to see cotton production increase by 22 per cent and seven per cent year on year, respectively, the report added.

Xinjiang is expected to continue to account for over 91 percent of the country’s total production due to higher temperatures than in previous years coupled with further increases in the planted area.Last year, Xinjiang produced almost 20 per cent of the world’s cotton, but this year’s deliveries have slowed due to labour shortages caused by strict coronavirus controls and lower-than-expected cotton prices affecting farmers’ confidence in selling.

The average Chinese cotton delivery price is down by 44 per cent year on year with cotton stocks up one per cent year on year. Cotton stocks in China are likely to experience further pressure, with demand weakening in October due to a slowing global economy, a sluggish textile industry and global inflation.Lower yarn imports and domestic cotton consumption are driven in part by domestic Covid lockdowns, foreign trade policies barring imports of China’s cotton products, and slowing global demand for apparel.

The United States has effectively blocked imports of all products wholly or partially sourced from Xinjiang, where China has been accused of committing rights abuses such as forced labour against minorities.