Cotton needs to undergo the cotton ginning process before yarn can be made by spinning. There are
20 state-owned spinning mills run by the Ministry of Industry (I). State-owned cotton ginning
factories that supply raw material to the spinning mills used to be run by the Ministry of Industry (I)
as well, but in 1994/95, some factories were transferred to the Ministry of Agriculture and Irrigation,
and the Myanmar Cotton and Sericulture Enterprise (MCSE) was established. MCSE became
responsible for procuring the cotton procurement required for state enterprises as well.
MCSE procures cotton either directly from farmers or from cotton traders. Cotton traders used
to supply cotton exclusively for the private cotton ginning factories (the number reached 370 in
2000/01), but after 1998 they were required to sell part of their cotton to the government (50% in
1998, and 25% after 1999).
Figure 17 indicates the trends in cotton supply, classified by governmental and private
procurement. The big jump in production in 1995/96 was the result of an aggressive policy for
expansion of the sown acreage of cotton just after the transfer of the responsible authority, as
Cotton needs to undergo the cotton ginning process before yarn can be made by spinning. There are20 state-owned spinning mills run by the Ministry of Industry (I). State-owned cotton ginningfactories that supply raw material to the spinning mills used to be run by the Ministry of Industry (I)as well, but in 1994/95, some factories were transferred to the Ministry of Agriculture and Irrigation,and the Myanmar Cotton and Sericulture Enterprise (MCSE) was established. MCSE becameresponsible for procuring the cotton procurement required for state enterprises as well.MCSE procures cotton either directly from farmers or from cotton traders. Cotton traders usedto supply cotton exclusively for the private cotton ginning factories (the number reached 370 in2000/01), but after 1998 they were required to sell part of their cotton to the government (50% in1998, and 25% after 1999).Figure 17 indicates the trends in cotton supply, classified by governmental and privateprocurement. The big jump in production in 1995/96 was the result of an aggressive policy forexpansion of the sown acreage of cotton just after the transfer of the responsible authority, as
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