China may struggle to meet cotton demand as the cotton growing area is expected to decline in the next 12 months to 63.40 million mu (about 4.23 million hectares), 9.4 percent less from 2013. According to Lian Weiliang, Deputy Head of the National Development and Reform Commission, the cotton yield is also likely to fall by half a million tonnes to 6.5 million tonnes. As per reports, China’s cotton demand may surpass its supply by two million tonnes from September 2014 to August 2015. Seeing the situation, Lian has called for a ‘new purchase and sale mechanism for cotton’, introduction of a ‘nationwide modern logistics system’ for improved cotton yields through better technology.
