7/8/2013 at 12:00 a.m.
From The International Cotton Advisory Committee:
All in all, China’s cotton policy remains the main driver of world cotton prices. With the recent acknowledgement of the market distortion created by its national cotton reserve programs, Chinese policymakers are already planning to experiment with a direct subsidy in Xinjiang. At the provincial level, in an effort to stop the rapid decline of cotton planting in Hebei, cotton farmers were paid a direct subsidy in April this year.
Since 2010/11 world cotton production has exceeded world cotton consumption. While the 2012/13 global ending stocks are expected to be approximately split evenly between China and the rest of the world, China is projected to hold close to 60 percent of the global stocks by the end of 2013/14.
The full article can be found here