National New Deal Abolished Cotton Purchase And Storage To Straighten Up Domestic Cotton Prices Or Down 15%

at home Cotton enterprises Under the background that cotton prices are too high to compete for the quota of imported cotton, the national development and Reform Commission has identified Xinjiang as the only pilot area for cotton farmers' direct subsidy policy.

Insiders told reporters that the cotton purchase and storage policy does not guarantee that cotton farmers can get state subsidies. On the contrary, most of the profits are earned by middlemen. The direct subsidy way can at least guarantee that cotton farmers can get direct benefits.

Looking back in 2013, the state promulgated the cotton purchase and storage policy to ensure the interests of cotton growers, which also caused a serious hang up of cotton prices at home and abroad and weakened the international competitiveness of the downstream textile manufacturing industry.

It is reported that from 2014, the state will cancel the temporary purchase and storage policy, with Xinjiang as a direct subsidy policy of 380 yuan per mu. For this rumor, some cotton growers expressed disappointment because compared with the 2000 yuan / mu cotton planting cost, the standard of 380 yuan / Mu was far from expected.

However, if there is an analysis of the industry, if the subsidy standard is 380 yuan per mu, then according to the average yield per unit area in Xinjiang, each kilogram of seed cotton will probably get 1 yuan subsidy. If the purchase price of seed cotton in Xinjiang is maintained at around 8.5 yuan per kilogram in 2014, according to this calculation, if the price of seed cotton can reach 7 yuan per kilogram next year, plus 1 yuan / kg subsidy, cotton farmers will be able to guarantee the cost and make a profit. If the target price subsidy reaches 9 yuan / kg, then it is about 0.5 yuan higher than that per kilogram, although the rate is not large, but the income from the policy of purchasing and storing is still improved.

Insiders believe that the new policy After the introduction, it is estimated that domestic cotton prices will drop by 15%, and the difference between domestic and foreign cotton prices will be narrowed. Cotton prices will be good for the downstream cotton spinning enterprises.

However, due to the uncertainty and uncertainty of the current policy, most cotton textile enterprises still lack confidence. Some analysts point out that there are two kinds of domestic cotton policies. One is that the state will continue to collect and store, and the two is to completely liberate cotton prices and fix prices by the market.

Ma Junkai, Secretary General of the cotton association of Dezhou City, Shandong, told the media that the attitude of the country is very clear. It is imperative to ensure the cotton prices in Xinjiang, and the price of cotton in other parts of the country is completely liberalized and priced by the market. He said that from the current situation, the state continued to purchase and reserve capacity.

"In fact, foreign customers such as the United States are waiting for the implementation of China's cotton purchase and storage policy, and wait for the future price of cotton to place further orders." A cotton salesperson told reporters.

"Cotton prices, cotton Policies may be more difficult to predict than in the past two years. " Gao Yong, vice president and Secretary General of the China Textile Industry Federation, pointed out at the 2014 China spinning Roundtable forum that after the new cotton went public this year, although the state no longer bought and sold it, there were 13 million tons of cotton in the national treasury, which was equivalent to storing more than two years of cotton production. It would take several years to digest cotton, and the country has only one means of digestion at present, that is, import quotas.