Home >

Moderate Adjustment Of Cotton Policy Is Imperative

2013/4/13 9:09:00 21

Cotton PolicyCotton QuotaCotton PlantingCotton Storage

The current policy's role in the cotton market has led to the following phenomena:


everything cotton Under the guidance of current policies, we tend to pay reserves. In 2012-2013, the state reserve cotton has reached about 6500000 tons in storage. The main body of market participation is the collection and storage, and the market lacks vitality.


Two is cotton. Spin While enterprises are gradually adjusting their product mix, some enterprises that can not adapt to the market by differentiated products are shutting down or shutting down directly. In the atmosphere of high cotton prices, cotton textile enterprises reduce the proportion of cotton by changing the structure of raw materials, and at the same time reduce the cost of production by using imported cotton yarn. Due to the rising cost of labor and energy, the entire cotton textile industry seems to be in transition.


Three, the market shrinkage of China's cotton textile industry has resulted in a large expansion of cotton textile industry in India, Pakistan and other cotton producing countries. Even the surrounding non cotton producing countries and regions have begun to expand. This is the irrational expansion of other countries under our current policy. Of course, this may also lead to the export of related textile machinery in China.


Under such circumstances, the parties have put forward many suggestions around the next regulatory policy. I think there are several misunderstandings that management should pay attention to.


First, the interests of cotton farmers. The purpose of storing and storing is to protect cotton farmers or to protect the cotton industry. If it is a cotton grower, the author once suggested that "the concept of cotton growers has changed a lot" at this stage. In fact, there are still a few acres of cotton planting in one household, but it is not common now. It is not the main body of cotton producers. They are no longer suitable for planting cotton and other grain crops. According to the previous grain and cotton ratio, formulating the purchasing and storage price is no longer suitable for the development of modern agriculture. If it is the cotton industry, it is necessary to formulate the corresponding policies according to the characteristics of the global cotton production and the average cost of the global cotton production. This industry will not be deformed and healthy. Let the market even allocate this resource and make full use of two domestic and international markets and two kinds of resources.


The two is the way of industry nurturing agriculture. Let cotton textile enterprises digest cotton which is far higher than the international market. Subsidize agriculture in this way is just the end. As previously said, if the cost of other links in the domestic cotton textile industry chain, such as labor, energy, taxes and so on, is much lower than that in foreign markets, the industry may also be able to absorb these high price cotton. But in fact, the growth of the cost of the industry chain in recent years has posed a great threat to the survival of the cotton textile industry. Since the new cotton year, the domestic and foreign cotton price difference is too large, which has led to a sharp decline in domestic cotton consumption, which directly caused the shortage of cotton and most of the warehousing.


 


{page_break}

The development of the textile industry has absorbed a large number of rural labor force, and the rural surplus labor force has worked hard in the textile industry to increase their income. The indirect subsidy of the textile industry to cotton and other agricultural products has been realized through the way of marketization of labor, and the industry has regurgitation to feed agriculture.


Three is the overcapacity of the cotton textile industry. Cotton textile industry It is a fully market-oriented industry, and the development of industry is basically the result of the allocation of resources in the global market. The rapid development of industry benefits from the distribution of China's industrial structure and overall resource efficiency. There are many new technologies and new equipment at the present stage in the field of cotton textile. The continuous improvement of technology and equipment greatly improves the production efficiency and scale of the industry. Of course, many enterprises can not follow up the development of the situation, backward equipment and technology, unable to stand on the market, and naturally they will be eliminated. So if someone says cotton textile is overcapacity, this is not scientific.


The four is to restrict the import of cotton yarn. If the import of cotton yarn is restricted, should cotton import be restricted? clothing Should import be restricted? If a large number of imported cotton yarn is equivalent to imported cotton in disguised form, we must consider the marketization of China's cotton industry from the source. At this stage, domestic and foreign cotton price difference is too large, resulting in a large number of imports of cotton and cotton yarn, and at the same time, the advantages of China's cotton textile industry have been curbed. Therefore, restricting the import of cotton yarn can not solve the problem from the root cause.


The ultimate goal of the cotton regulation policy is the healthy development of the cotton industry chain and the safety of the cotton industry.


So, how do we adjust the cotton market at this stage?


The author believes that the protection of agricultural products is the established national policy of many countries, and the developed countries attach great importance to the protection measures of agricultural products. As a developing country, agriculture is the foundation and the cornerstone of development. Even if no grain is so important, cotton is still an important agricultural cash crop. Recently, China's grain consumption has increased rigidly, with an annual import ratio of 2%, and the relevant departments have said that food security is guaranteed. However, if 4 million tons of cotton are imported each year, which accounts for a large proportion of consumption, and the domestic cotton will basically be deposited as a national reserve, the safety assessment of this industry should be negative.


The healthy and sustainable development of cotton industry chain is the safety of cotton industry. That is, the relative health of the whole industrial chain from cotton planting to clothing is the symbol of industrial safety. It is suggested that the cotton policy be finely adjusted from the following aspects.


First, early warning and rational layout of cotton planting should be issued. Guide the market with price and decide the planting area of cotton. By rationally guiding the planting structure of agriculture, let the market decide whether to plant cotton and how much cotton to grow, so as to achieve the relative balance of cotton planting and use, thus stabilizing the development of the industry. Timely warning is also a signal to other cotton planting countries around the world to rationally allocate the production of international cotton industry.


The two is to adjust the purchasing and storage mechanism and manage inventory dynamically.


The continuity and stability of the cotton policy should be maintained. In 2013, the temporary cotton purchase and storage policy should be continued, and the purchasing and storage prices should be handled flexibly. Maintain the policy flexibility with the two prices of protective price and temporary storage and purchase price. Price protection and storage are not limited, and prices refer to international long-term average prices. Time periods can be selected according to circumstances. The price of temporary storage and storage and the starting and ending time will be grasps according to the circumstances, and the reserves will be announced at the right time. The price of temporary purchase and storage is based on the international market price. In the same period, when the international market price is lower than the protective price, it will be opened and stored at the protective price. When the price is higher than a certain price, it automatically stops collecting and storing, and throws the store according to circumstances. After two years of storage, the state has established a reasonable inventory. How to maintain stability and sustainability of the industry should be the main objective.


 


{page_break}

China's large imports of cotton and cotton textiles, at relatively high prices, have encouraged production and promoted the enthusiasm of the world's cotton and cotton textiles to promote the cotton production in cotton producing countries and replenish the stock in the international market. At this stage, we import a lot of cotton from the main cotton producing countries, and also import a lot of cotton yarn and cotton cloth from India and Pakistan, resulting in the shrinkage of cotton textile industry in China. In a sense, China indirectly subsidizes cotton production in other countries.


Under the background of insufficient global demand, cotton production is relatively surplus in a short time. However, the author thinks that it is best to use the market mechanism to consume relative surplus cotton.


If the long-term average price in the international market is 70 cents, then how much cotton will there be in the 30 cent cotton price and how much cotton output will there be? How about 40 cents, 50 cents and 60 cents? If the biggest cotton production and consumption market is in China, the pricing power of cotton should be in China, and it must be in China. In the case of relatively stable economic conditions such as exchange rate, it is certain that the long-term price of cotton in the international market will be lower than China's long-term price for quite some time in the future. That is to say, even if our comparable price is 70 cents, the price in the international market will still be lower than this price. Then we have to figure out how much output we will have at 70 cents, how much will we import from the international market? How much of a production is our safe production and how much we need to maintain such a production.


Another is how much reserves can guarantee the safety of China's cotton industry.


The three is to reduce inventory by pushing ahead. If we need to reduce the existing stock, we can refer to the imported cotton index to replace the imported quantity with the designated quantity of the national cotton reserves. For example, a certain quantity of reserves can be produced in batches, which can be 1 million tons or 3 million tons. For export enterprises, the processing trade management is implemented according to the import cotton index. In order to reduce domestic and foreign market fluctuations, it can be carried out in small quantities.


Four, we should use tax rate to promote cotton consumption. We should consider subsidized cotton import links to subsidize the high and low price spread of national cotton reserves. It is also possible to consult the relevant departments of the state to set up a high tax deduction for the national reserve cotton throwing and storing price, which can adjust the tax rate of the cotton coming out of the warehouse to 20% or even higher, and reduce the cost of using cotton and expand the use of domestic cotton by reducing the enterprise's tax burden. It is necessary to consider the operability of the current tax system. This is to use the future tax to reduce the current financial subsidy cost and promote the consumption of domestic cotton.


Five, we should consider opening cotton quotas with conditions. Use certain rules to regulate cotton import and import rhythm. The market price should be adjusted flexibly by import link tax rate and restricted import purpose. We should synchronize the domestic and foreign cotton market and increase the transparency of the market, so that all parties participating in the market can make full use of two domestic and international markets and two kinds of resources.


   Cotton industry The policy should be relatively stable and timely adjusted so as to maintain the healthy development of the whole industrial chain. The harmonious health of producers and users of cotton should be the foothold of cotton policy at this stage.

  • Related reading

鞋企品牌应该导入个性化

Industry Overview
|
2013/4/11 21:05:00
18

Footwear Industry Reform Will Promote Retail Terminal Operation Mode

Industry Overview
|
2013/4/11 18:24:00
27

Eight Key Words In The Development Of Garment Industry In The Era Of Refinement

Industry Overview
|
2013/4/11 9:45:00
2746

户外用品同时申请多个商标成常态

Industry Overview
|
2013/4/11 9:05:00
43

Local Sports Brands Emphasize Publicity And Promotion Expenses.

Industry Overview
|
2013/4/11 8:55:00
32
Read the next article

China Sewing Machine Development Report Of Sewing Machine Industry In 2012

In 2012, China's sewing machinery industry continued to continue its downward trajectory in the second half of 2011. Affected by such factors as domestic demand, weak external demand and rising cost of production factors, the value of production and sales both declined and increased. According to the Association estimates, in 2012, China's sewing machinery industry completed a total industrial production value of about 57 billion 500 million yuan, down 10.6% compared to the same period l