Additionally, the price of fine staple cotton rose 5,000 yuan per tonne since last September and the price of long staple cotton rose 12,000 to 14,000 yuan per tonne, up 30 to 50 percent, which had brought great pressure on cotton companies, said Li Chuanbo, general managing assistant of Shandong Demian Incorporated Company, the biggest cotton company in Dezhou.

The price of cotton yarn even doubled to 37,000 yuan per tonne, which ordered the companies to wait and see rather than storing the materials as usual, Yu said.

"The prices of towels will be rising for the fourth time since the end of last year, and the price of bedding will also rise in a few days," he said, adding that prices of most daily commodities rose 15 to 20 percent.

Experts said the cause of the increases includes two factors, one is the increasing demand from India and America, while the other is the decreasing of planting acreage in China.

According to a report by America's Department of Agriculture, the global demand for cotton will be 890,000 tonnes in November. Further, the futures of cotton in New York has been rising since late July and has now risen about 70 percent.

The cotton in northwest China's Xiniang Uygur Autonomous Region, accounting for one-third of China's total cotton output, will soon appear on the market, which is expected to relieve the current situation.

Compared to other agricultural products, cotton has a lower subsidy of 15 yuan for each mu, while the subsidy of other products could reach 38 yuan, Ma said.

Dezhou had 2.3 million mu of cotton in 2009, down 19 percent from 2008, which was the lowest point in the last seven years.

The planted cotton areas in the city are only 2.1 million mu this year, down 10 percent from last year, which is the lowest point in the last decade, Ma said.

The price increases were not only limited to cotton, but appeared in many other markets, including food and oil.