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Cotton Business Owners "Lost" Medium Term Policy

2008/11/7 10:03:00 31

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Recently, the cotton processing industry in most cotton producing areas in China has basically stopped purchasing. The cost of processing lint has already been higher than the selling price. The sales are not smooth and the price is not ideal. Many owners of cotton enterprises feel that this year's cotton business is more difficult than last year.

Although the state has issued information on the purchase and storage of Xinjiang cotton, it has not been recognized by the market. We believe that the policy of purchasing and storing up is certainly good, indicating that the government has been paying attention to this market.

But in our survey, more cotton enterprises still do not use the 400 baling machine, only to take care of the interests of large enterprises, but small businesses are still struggling in life and death. Some enterprises say that more small owners of cotton enterprises are farmers, and there are certain limitations in capital and management. That is, the scale of enterprises now is good enough to operate well. The 400 packers should be accessible. More voices are heard, hoping that the government can pay more attention to the survival of small businesses.

Despite the current cotton price and the processing of the cotton ginning industry, the cotton growers do not recognize the current price. Because of the large increase in planting costs over the previous year, many cotton growers do not recognize the current price.

The cost has increased, but the purchase price has been reduced. Many cotton farmers say they will replant other crops next year.

"Cotton splashing and damaging farmers", if cotton prices do not rise, will greatly hurt cotton growers' enthusiasm for planting, and at the same time, a large number of rural labor force will be pferred to cities. If cotton price is not attractive, it will be inevitable to reduce the cotton planting area.

The state should actively introduce measures to stabilize the domestic cotton market.

Textile enterprises are also having a bad time. Because of the financial crisis, the appreciation of the renminbi, the increase of labor costs and the increase of production costs, the entire textile industry is in a predicament, and spinning enterprises can barely maintain production.

At present, the domestic textile industry is facing an unprecedented predicament. If this situation continues, it will probably cause a large number of unemployment. According to statistics, about about 20000000 of the domestic cotton textile industry practitioners, 1/3 textile and garment enterprises are difficult to survive, this is not a negligible figure.

At the same time, it will also lead to a decrease in cotton demand, which will affect the cotton farmers' income, and will affect the entire cotton industry chain in China and threaten the cotton planting area.

We believe that following the Ministry of finance's export rebate rate of textile and clothing increased from 11% to 13% in August 1st, the export tax rebate will still increase next.

The US financial crisis is leading to the main developed countries in the West. The shrinking of the international market directly leads to the reduction of orders and the decline of exports.

The reduction of consumption demand will further deteriorate the export environment and will also lead to a decrease in export volume.

We believe that the domestic cotton textile industry should actively explore the domestic market and stimulate domestic demand, so as to make the domestic cotton spinning industry enter a virtuous circle stage.

Cotton growers, cotton enterprises and textile industries are confronting each other. They do not recognize each other's current prices. We believe that China's cotton textile industry has entered a critical stage, and it is also the most difficult stage. The interests of the three parties need to be taken care of, and the three are the main participants in the development of domestic cotton spinning industry.

At present, the domestic cotton spinning industry is like the blood circulation system of human body. Any joint blockage will cause paralysis of all systems.

To stop, stop and stop production, cotton enterprises look forward to the change of policy in perplexity. The price of cotton farmers waiting after spring ploughing, summer and autumn harvest is not satisfactory, which is cool. The capital of textile enterprises is still the key factor restricting the purchase, and the sale is not smooth, even if there is money, it is not willing to reserve raw materials.

Everything will be expected and the policy will be warmer.