China's natural color cotton industry has received a boost with news that contracts involving 8,000 tons of cotton have been signed with overseas business representatives at an ongoing trade fair in northwest China's Xinjiang region.

"Two companies from India and Pakistan have signed contracts worth 197 million yuan (26 million U.S. dollars) with us," said Yu Wanchun, chief executive officer of China Colored-Cotton Group based in Xinjiang, the world's biggest production base of natural color cotton.

Exports to South Asian countries account for one third of the total of the company's exports, said Yu, adding that cotton merchants from the United States, Sri Lanka and Sweden were also showing interest in Xinjiang's color cotton.

Jayant B. Shah, of Gilla Co Pvt Ltd. in India, said India's demand for the color cotton was rising along with people's awareness of environmental protection.

"The color cotton does not need to be dyed and will not cause pollution in processing," said the Indian merchant, at the five-day economic and trade fair held in Urumqi, capital of Xinjiang, which began on Saturday.

"Color cotton-made garments do no harm to human bodies and thus are becoming increasingly popular among consumers," said the businessman.

China produces about 30,000 tons of natural color cotton each year, accounting for nearly 60 percent of the world's total. Ninety-five percent of China's color cotton is produced in Xinjiang, which has an area of 20,000 hectares sown to the crop.

(Xinhua News Agency September 5, 2007)