China, the world's textile giant, will need to import 4.51 million tonnes of cotton this year as the demand for cotton is expected to reach 10.6 million tonnes while output is estimated at only six million tonnes, an official said.

The demand would continue to outstrip supply and the estimated the shortfall will be 4.51 million tonnes, general manager of China National Cotton Reserves Corporation, Lei Xiangju said.

She said the gap between supply and demand would continue to widen in 2006 despite tougher times for the Chinese textile industry which is having to face up to rising costs, falling competitiveness and the strengthening of the Chinese currency, yuan.

In 2006, China's cotton-growing area totalled 13.02 million acres, an increase of 494,200 acres a year ago.

Last year, China produced 5.7 million tonnes of cotton, down 9.8 per cent from 2004.