Around 60 per cent of Australian cotton is exported to China, and Chinese mills have been encouraged to source cotton from alternative sources.

RivCott's CEO Sam Buster said the quality of Australian cotton would mean other markets would open for growers. He said while some growers may have to take a discount on their price for exports earmarked for China, there would be alternatives.

"It's not a question that we will have a market," Mr Buster said.

Meanwhile, the cotton futures market - one of the determinants of prices, has increased.

"From a growers point of view, the price of cotton has been going up," Mr Buster said.

He said the price for cotton futures had been steadily increasing and some growers were locking in prices for 2022.

Southern Cotton's Kate O'Callaghan said they were confident growers would always find a home for the commodity.

"At this stage, merchants are still purchasing Australian cotton for prices that provide our growers with great returns," Ms O'Callaghan said.

"While it is difficult to determine what impact the recent changes will have on the local cotton industry, we are confident that our growers will always find a home for their cotton, both here in Australia and around the globe."

A joint statement from Cotton Australia CEO Adam Kay and Australian Cotton Shippers Association chairman Michael O'Rielley said the industry was "disappointed".

"It has become clear to our industry that the National Development Reform Commission in China has recently been discouraging their country's spinning mills from using Australian cotton," the statement read.

"The Australian cotton industry has earned a reputation as a reliable international supplier of cotton with fast shipping times to export destinations and reliable delivery.

"Our crop is in strong demand internationally and can attract a price premium due to its high quality, excellent sustainability credentials, reliability and a proven track record in meeting manufacturer and consumer needs, including in China."

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