Beijing — China is set to boost its imports of cotton by issuing additional import quotas to mills, said the China Cotton Association on Monday, a move seen by the market as another step towards meeting the demands of top exporter the US. The association, which lobbies the government on behalf of cotton farmers and processors, said the soon-to-be-released additional quotas were one of the measures the government was taking to help ease recent market volatility. China, once the world’s top cotton importer, has seen imports shrink from more than 5-million tonnes in 2011-12 to about 1-million tonnes in 2017, due to efforts to reduce state stockpiles. After several years of auctions to lower state stocks and with demand recovering, the market has become concerned about supplies. China’s domestic cotton futures have rallied nearly 18% since early April, fuelled in part by worries over crop damage from heavy rains, as well as by speculation. American farm goods Traders said China’s move, ...
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