According to China Cotton Association's investigation over 1975 growers and 10 major cotton belts in February 2023

According to China Cotton Association's investigation over 1975 growers and 10 major cotton belts in February 2023, the cotton planting areas are likely to be 42.1196 million mu nationwide, down 3.7% year on year. The reductions are in‘mainland’provinces, and are ascribed to the disappointing profits achieved by growers last year, as well as uncertainty as regards the subsidy policy outside Xinjiang. The expectation of area in Xinjiang has been maintained at 37,684,200 mu, down 0.5% year-on-year. Area in the Yellow/Yangtze River Valley regions this year could be reduced by as much as 18 and 30 percent, respectively.

Around two thirds of the respondents indicated plans to reduce their area this year, and only 3.2 percent intended to increase it. Those who expect to maintain their area are still optimistic owing to the support of the subsidy policy in Xinjiang, as well as the expansion of mechanization, which reduces growers’costs. However, some growers are concerned about the increasing cost of irrigation water, and the late distribution of 2022 subsidies, which are still awaited.