Seven Government Departments Regulate Cotton Price

The National Development and Reform Commission, the Ministry of Agriculture, the Ministry of Railway and other four departments jointly released a notice for new cotton purchase. Besides ensuring of cotton purchase fund and transportation arrangement, cracking down the cotton speculation is also the main work.

Cotton prices continued to rise since the end of 2009. It has become the focus of the regulatory authorities. The Ministry of Agriculture held a meeting on September 27 with other six departments to propose some meatures including throwing reservoir to the market, ensuring the new cotton transport, and increasing imports. Otherwise in October, the cotton price continued to rise. According to statistics of China Cotton Network, the price rised 5301 yuan per ton at the end of October comparing to that in September, or an increase of 23.34%.

Referring to the regulation, the fight against hoarding and speculation are main focus. "Notice" clearly require to guide enterprises to rationally determine the purchasing price of cotton, processing quickly then selling quickly, to avoid blind buying and hoarding, and guide enterprises do not participate in speculation, and severely crack down on price rising information, as well as maliciously hoarding.