Controls on cotton market to remain

CHINA will retain state control on the cotton market because of dwindling output, the official China Daily reported yesterday.

Internal Trade Ministry spokesman Ding Junfa said the state would continue managing cotton purchases, marketing and storage.

Controls on most other commodities have been gradually lifted.

However, pests, poor weather and farmers leaving the land have reduced cotton production and forced the state to retain control.

The report said the state would guarantee cotton supplies to major textile enterprises with good production and profit records.

However, those involved in speculation and profiteering would face penalties, Mr Ding said.