China's cotton imports may drop 10%

China, the largest importer of cotton in the world, may reduce cotton imports by 10% this year on higher prices and borrowing costs, Bloomberg reported. Yuan Haiying, a Beijing-based consultant who tracks the Chinese agriculture industry, said demand for cotton will decline as the central government attempts to curb inflation and the industry shifts to synthetic textiles. China imported 2.84 metric tons of cotton last year. Chinese cotton imports dropped precipitously in April, down 35% year-on-year according to data from the China National Cotton Exchange. China canceled orders for more than 100,000 bales of cotton last month, according to the US Department of Agriculture. Prices for cotton in New York are down 34% since hitting a record high of US$2.197 per pound in March.