Textile Enterprises Look Forward To Supporting In The Predicament

The author recently learned from Xinhui customs that from June 5, 2008 to October 5th, the cotton slip tax on import quotas fell from original 5%-40% to 3%-40%, and the current sliding tax was resumed from October 6th.

The state has lowered the import tariff of cotton, so that the new textile and garment enterprises that have been subjected to big waves and weighed ahead will see a ray of light in the difficulty, because this will enable them to reduce some cost pressures when importing cotton.

It is understood that, influenced by many factors, such as RMB appreciation, raw material price increase, export tax rebate reduction and the US subprime mortgage crisis and domestic cotton price higher than the international cotton price, the first 5 months of Xinhui textile (including textile yarn, fabrics and products, clothing and accessories) exported 140 million US dollars, down 8.2% from the same period last year.

The decline in competitiveness of textile exports has a lot to do with domestic cotton prices far higher than the international market.

According to people concerned, cotton prices in recent years are 1500 yuan / ton higher than that in the international market, of which the low grade cotton price is 4000 yuan / ton higher than that of India.

This has made the textile enterprises with a large number of low-grade cotton clothing suffer the most impact, resulting in a decline in the export of products, and some small and medium-sized enterprises have suffered losses and stopped production.

Relevant data show that since June last year, the growth rate of China's textile industry added value has been lower than the national industrial level, and this deviation phenomenon has further intensified since the beginning of this year.

In January 1-4, the cumulative growth rate of industrial added value of industrial enterprises in the whole country was 16.3%, down 1.7 percentage points compared with the same period last year, while the added value of the textile industry increased by 12.7% compared to the same period last year, down 4.5 percentage points from the same period last year.

Insiders pointed out that due to various factors, the survival environment of the textile industry has deteriorated unprecedentedly, especially the hard gap of domestic cotton, so that enterprises have to pay much higher costs than foreign competitors, and some enterprises even stop production and reduce production.

Reducing the slip tax of cotton imports can, to a certain extent, reduce the pressure of textile enterprises and promote the import of textiles, but it is only a shot in the arm, and can not directly change the plight of the textile industry.

The fundamental way is to increase the competitiveness of the domestic textile industry through the "comprehensive boxing" to control the rise of resource products and stabilize the cotton price in the later stage with supporting policies.