Cotton Subsidy Policy For Cotton In Xinjiang

Xinjiang cotton seized and seized the embarrassment in August 31st. The result of the 81 thousand and 300 ton storage and withdrawal is far from the original planned 150 thousand tons.

In August 28th, people familiar with the matter told our reporter that before the purchase and storage, the research group composed of the national development and Reform Commission, the Ministry of Finance and the China Agricultural Development Bank went to Xinjiang, Shandong and other places to conduct field research, and also conveyed the idea of purchasing and storing.

However, the first round of storage and purchase was only half the market, which is far beyond market expectations.

The head of Shandong cotton and linseed company attributed it to harsh collection and storage provisions.

"The purchase and storage is directed against the new system cotton, and nearly 2/3 of Xinjiang's cotton store is blocked outside the storage door."

In view of this, if the sales of new cotton are still in the doldrums during the period from mid September to October, the government may also introduce new favorable policies.

Cold storage

In August 31st, it was the last day of the state's purchase and storage of 2007/08 (September 2007 -2008 August) Xinjiang cotton.

After half an hour of storage, the China cotton reserve management company only received 100 tons of cotton and the 28000 day storage plan.

In August 19th, the national development and Reform Commission, the Ministry of Finance and the Agricultural Development Bank of China jointly issued the notice on the 2007 year (September 2007 -2008 August) national reserve cotton purchase and storage plan.

The central reserve cotton also announced that it would carry out storage and purchase in batches. The first batch (August 21st -8 26 days) temporarily collected 150 thousand tons. The highest storage price of Xinjiang storage point was at the standard level (328 level), 13400 yuan per ton, and the inland reservoir point was 13600 yuan / ton.

At present, the spot market price of the same kind of cotton is 13678 yuan / ton.

However, since the beginning of the purchase and storage of Xinjiang cotton in August 21st, the daily storage and storage capacity of the central storage cotton has been declining.

The government planned to complete 150 thousand tons of Xinjiang cotton purchase and storage in 6 days, and the actual storage capacity in August 26th was only 74 thousand and 100 tons.

This forced the central reserve cotton to postpone the purchase and storage plan until August 31st, and by August 31st, the total storage capacity was still only 81 thousand and 300 tons, far less than the 150 thousand tons of storage and purchase plan.

In the spot market, cotton prices were not only rising because of the purchase and storage, but also on the same day.

From August 21st to 25, China's cotton price index dropped by 13 yuan / ton, and the average price of matching was also down by more than 100 yuan.

A person in charge of Shandong cotton and linseed company said in August 28th that the cotton enterprises that he contacted were able to accept the price of 13400 yuan / ton -13600 yuan / ton.

Xinjiang one cotton enterprise said, although the company's hands of cotton, but less than 20% of cotton meet the storage conditions.

According to the announcement of the Central Cotton store, Xinjiang cotton, which has been stored and stored, must be a new cotton plant, and the enterprise must be registered locally in Xinjiang.

Since the reform of cotton system in 2005, cotton packing, inspection and related instruments are different from other cotton.

In 2007/08, the purchase amount of cotton in Xinjiang area was 3 million 290 thousand tons, of which 1 million 260 thousand tons of new system cotton, and 8 million tons of cotton output in the whole year, the new cotton was only 1 million 500 thousand tons.

First textile network analyst Chen Xiaoyan said in August 31st that the calculation found that only 421 enterprises met the storage requirements, and there were more than 10 thousand cotton enterprises nationwide.

The price problem is also one of the factors causing the cold storage.

Chen Xiaoyan said that although the purchasing and storage price is similar to the spot market price, it can only be tied to the cost price of the enterprise.

The Shandong cotton and linseed company told reporters that considering the annual storage fee of 1000 yuan per ton and interest on loans, the cost of cotton on hand has reached nearly 14000 yuan / ton.

In fact, in mid August, the national development and Reform Commission, the Ministry of finance, the Agricultural Development Bank of China, the China national supply and Marketing Cooperative headquarters and the zhongchu cotton company jointly organized a research group and went to Xinjiang, Shandong, Hubei and other places for research.

According to people familiar with the matter, this survey is a routine survey before September, and the research group, in addition to examining the supply and demand situation of the next cotton year, also conveyed the idea of storing and storing Xinjiang cotton in advance.

According to the argument at that time, the original purchase and storage plan was 300 thousand tons, and the initial plan was carried out in two phases.

If 300 thousand tons can not solve the problem of Xinjiang cotton, it will not rule out the possibility of further expanding the storage and purchase plan, but if the 150 thousand tons of the first phase can not be completed, there will be no more second stages of purchase and storage.

In addition, the research group also stressed that the purchase and storage were designed to crack down on the issue of loans issued by New Territories cotton in arrears, and the government had no intention to guide cotton prices.

Chen Xiaoyan said that Xinjiang is the most important cotton producing area in China. Its annual output accounts for about 1/3 of the national cotton output and its supply is very stable.

However, at least 70% of the annual acquisition of Xinjiang cotton depends on the loans issued by the agricultural development bank. These loans are issued in September and October when the new cotton market comes into operation. The next June -8 end of the year requires "double knot zero", that is, the principal and interest are required to be returned to the bank, so that the bank can continue to obtain bank financing in the next year.

However, since last year, the situation of downstream cotton spinning enterprises has become increasingly difficult, and the demand for cotton has been reduced accordingly, and cotton prices have been falling repeatedly.

The industry is in a slump, and cotton production is higher than previously expected, making Xinjiang cotton, which is not convenient pportation, seriously unsalable.

Shi Jianwei, vice president of the China Cotton Association, said at the Wuhan cotton situation analysis conference in August 29th that cotton production in China was no less than 8 million tons in 2007/08, higher than the 7 million 600 thousand tons released by the National Bureau of statistics at the beginning of the year. Considering the import of 2 million 500 thousand tons in the whole year, the supply of cotton in the whole year was 10 million 500 thousand tons.

According to the data released by the Xinjiang development and Reform Commission, as of the end of 7, the region acquired a total of 3 million 290 thousand tons of new cotton, an increase of 50.3% over the same period last year, while the supply and marketing cooperative system in the region sold 1 million 571 thousand tons of lint, down 18.9% from the same period last year.

According to this estimate, Xinjiang cotton has about 1 million 720 thousand? Script src=>