Cotton price soaring: “very calm” of Henan garment enterprises

due to the reduction of cotton production, the sales price of cotton in Zhengzhou keeps the same pace with that of the whole country, but the clothing enterprises in Henan are calm and do not send out the price rising signal

due to the low price of domestic cotton in 2008, the cotton planting area shrank and the output decreased in 2009. With the decrease of planting area and the bad weather, cotton production in Xinjiang has been greatly reduced, leading to a sharp rise in cotton prices. On Augus2, the 328 index of China’s cotton price reached 18229 yuan / ton, compared with 13144 yuan / ton on Augus3, 2009< Mr. Zhang, who has been engaged in cloth wholesale business in Zhengzhou Textile World for 15 years, said that since the Spring Festival, the price of cotton cloth has been rising. This time, the price increase of cotton cloth has reached a new high since 2003. Basically, the price increase of each variety of cotton cloth is more than 20%. the price increase of cotton cloth will inevitably lead to the increase of the cost of cotton cloth enterprises, But Henan’s clothing enterprises are very calm. Li Gang, Secretary General of Henan garment industry association, said that raw material cost accounts for less than 50% of garment processing cost. At present, garment processing enterprises in Henan have the ability to absorb the cost increase brought about by the rise of cotton cloth, and garment prices remain stable

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