The country's top economic planning agency underscored the issue is especially prominent in the region where the commodity is very largely produced.
"Cotton used to be a pillar industry in Xinjiang, if Xinjiang cotton has a problem, the foundation of our cotton-producing ability will be rocked," according to an online briefing by Fang Yan, deputy head of rural affairs at the National Development and Reform Commission.
At 1:21 p.m. on Wednesday, cotton futures decreased 2.55 percent, a 0.0437 cent drop to $1.6679 per pound.
Last year, the country imported 2.84 million metric tons of cotton, which represents an 86 percent increase from 2009, according to customs data.
"It's inevitable that China will expand cotton imports," Du Ying, an analyst at Wanda Futures, told the news service from Urumqi, Xinjiang. "Xinjiang farmers favor other cash crops such as apricots, dates and walnuts, so cotton isn't gaining much acreage."
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