Since the 2011/12 season, when Chinese cotton imports surpassed those of the rest of the world combined, China's imports have fallen from 5.3 million tonnes to a forecasted 1.6 million tonnes in the 2014/15 season, according to the latest figures from the International Cotton Advisory Committee (ICAC). This shows the sheer scale of the Chinese influence on the cotton fibre and the cotton market. The implementation of China's reserve policy created an artificially tight market, causing production and prices to go up. When China subsequently ceased its policy, the increased production resulted in surplus cotton on the market. China is due to start releasing bales from its huge stockpile on the market this year. China's enormous influence means that its every move, from restricting trade to releasing stocks back into the market, is having an effect on the global cotton industry.
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