Jiangsu Dafeng: Oil And Electricity Price Increases Have Greater Impact On Textile Enterprises.

It has been more than a month since the introduction of the oil and electricity price adjustment policy. Most of the textile enterprises in Dafeng, Jiangsu, have reflected a greater impact.

It is understood that, first, the increase in oil and electricity prices directly increased the cost of production of local textile enterprises, an increase of about 3%, of which the increase in pportation costs increased the difficulty of negotiation between buyers and sellers, and the failure of pactions increased because of the undertaking of pportation costs. Secondly, the settlement of oil and electricity costs were all in cash and with a time limit, which required higher demand for textile enterprises, and this year's textile enterprises were short of funds. The adjustment of the price could be exacerbated. Finally, after the increase of oil and electricity prices, the internal contradictions of local textile enterprises increased significantly. The phenomenon of restriction and stop production increased the instability of enterprise personnel, and the contradiction between capital recovery and payment could not be increased.

In addition, local textile enterprises are actively taking measures to reduce costs, such as reducing the frequency of administrative vehicles, reducing the use of electricity in non production areas, and limiting production and shutting down production according to market needs, without increasing the backlog of new stocks.