Serious imbalance between supply and demand on China's cotton market will vanish this year, and the cotton supply for textile industry is guaranteed, according to a relevant national tele-conference held here on Friday.

Despite US and EU restrictive measures imposed on China's textile export and the appreciation of Renminbi yuan, China's textile production and export will go on rising rapidly in 2005, resulting a growing demand for cotton, according to the meeting.

Though affected by natural disasters, China's cotton output still has reached a fairly good level thanks to joint effort by cotton growers and relevant parties, the meeting said.

Meanwhile, cotton supplies on the international market are plentiful, so cotton supply for China's textile industry is guaranteed, it said.

Relevant authorities at the meeting have asked local departments to guide cotton companies to set reasonable purchase prices so as to protect Chinese cotton growers' interests and guard against possible market risks.

If cotton prices drop too much due to increasing supply, the country will buy some cotton for reserves at appropriate price so as to stabilize its cotton price, noted the meeting.

Source: Xinhua