China's demand for cotton is expected to reach 10.6 million tons this year, while output is estimated at 6 million tons, a cotton official said.

Lei Xiangju, general manager of China National Cotton Reserves Corporation, said demand would continue to outstrip supply. She estimated the shortfall at 4.51 million tons.

She said the gap between supply and demand would continue to widen in 2006 despite tougher times for the textile industry which is having to face up to rising costs, falling competitiveness and the strengthening of the Chinese yuan.

In 2006, China's cotton-growing area totaled 79 million mu (5.27 million hectares), an increase of 3 million mu (200,000 hectares) on a year ago.

Last year, China produced 5.7 million tons of cotton, down 9.8 percent from 2004, according to data from the National Bureau of Statistics.

Source: Xinhua