Xinjiang Cotton "Hard Injury" Recurrence "White Industry" Still Needs To Mature

In July, in Xinjiang, the largest cotton producing area in China, cotton grows vigorously in the north and south of Tianshan Mountains.

However, the new harvest year has made people unhappy, and Xinjiang cotton is facing second large-scale unsalable difficulties since its accession to the WTO.

This year, the backlog of cotton in Xinjiang is due to a sharp reduction in China's textile exports and a shortage of textile raw materials.

At least about 1200000 tons of cotton purchased in Xinjiang last year have not yet been sold, about 1/3 of the year's total output.

"Sell hard" and "pport difficulties" coexist

According to statistics from the Xinjiang branch of the Agricultural Development Bank of China, according to statistics, by the end of May, 2 million 170 thousand tons of cotton purchased by the bank had only been sold at half, far lower than the same period last year.

As one of the main producing areas, the Xinjiang production and Construction Corps Nong Yi bought 250 thousand tons of cotton last year, and nearly half of them are still in the area.

Li Cheng, deputy general manager of cotton and hemp company of Nong Yi Shi, told the reporter that "this year's pricing is not high, but it can't be sold."

The main reason why cotton is unsalable is the decline in demand.

The foreign orders of China's textile enterprises this year have been greatly reduced compared with last year.

And a large number of imported cotton piled up in the warehouse of the Coastal Port Free Trade Zone waiting for landing in the Chinese market will enable domestic textile enterprises to buy cotton at any time, without having to store raw materials for a few months at a time.

What is more distressing for cotton enterprises is that this year's "pportation difficulty" is still outstanding.

Most of the warehouses and warehouses are full.

Because cotton is hard to sell, the market risk faced by enterprises is increasing day by day.

First, the use of loans has been extended for about 3 months than before. This reporter has learned that the cotton in hand is sold for one month, and the cost of interest and storage per ton will increase by 100 yuan.

With the 6 increase in interest rate since last year, the cost of acquisition and processing of cotton business has increased significantly, with an annual interest rate of about 1000000 yuan per loan and 100 million yuan per year.

The financial difficulties are also worrying the cotton sales.

Since last September, the Xinjiang branch of the Agricultural Development Bank has launched a total of 28 billion 380 million yuan of cotton purchase loans, and now only 59% has been recovered.

Because of the high risk of cotton processing industry, other financial institutions are gradually withdrawing from this field, and agricultural development bank has become the main source of cotton purchase funds in Xinjiang.

Yang Guanghua, deputy director of the two branch of Xinjiang branch, said frankly, "the Agricultural Development Bank has to ensure the safety of funds, and it must provide sufficient funding to enable enterprises to open acquisitions."

This year's acquisition of new cotton is also likely to be affected.

According to regulations, cotton business enterprises must repay all loans before the end of August this year and settle interest before they have the loan qualification for the next cotton year.

Yang Guanghua said, in two months, the acquisition of new cotton is about to start, and the most urgent thing is how to get rid of cotton as soon as possible last year.

Wenzhou cotton merchants do not worry about the secret of "selling"

In this survey, we found that the cotton in Wenzhou cotton traders who had walked in Xinjiang had already been sold out.

In a voice of "selling hard", why did the cotton bought by the private cotton business go smoothly and continue to make profits?

Xinjiang Akesu Tianquan cotton industry is a cotton processing and processing enterprise invested by Wenzhou businessmen.

Li Jian, the head of the enterprise, told reporters that three years ago, the Tianquan cotton industry signed a long-term supply agreement with four textile enterprises under the Yongda textile group of Yancheng, Jiangsu, so that most of the cotton plants had "landed".

Paying attention to customer opinions is one of the reasons for the rapid establishment of firm sales channels.

For example, the problem of "three silk" (hair, livestock hair, chemical fiber yarn) is the "cancer" of domestic cotton. During the rush hour of cotton purchase last year, reporters found a spectacular "flower picking scene" in Tianquan cotton factory area: nearly 100 workers wore white caps and covered gauze covers, squatting on the ground and constantly ripping cotton wool and picking "three silk".

The process of selecting "three threads" from textile enterprises to cotton processing links will greatly reduce the burden of textile enterprises. It is an important reason for Tianquan cotton industry to win customers' trust.

Tianquan cotton industry specially hired people to pick "three silk", although the cost per ton of cotton increased by tens of dollars, but because of the "three silk" less, the price of cotton is 200 yuan higher than the market price per ton.

Because of the strategy of "quick processing and quick sale", the capital of Tianquan cotton has been continuously circulating, and the cost of finance has been greatly reduced because of the lack of warehousing costs. This ensures that the enterprise can always grasp a large amount of cotton resources.

From the last half of September last year, the Tianquan cotton industry bought about 50000000 yuan worth of cotton for more than 200 million yuan.

In addition, private cotton enterprises continue to carry out technological pformation and adopt flexible employment mechanism to enhance competitiveness.

Fair competition and "sell hard"

In view of the situation of "selling hard" this year, the Agricultural Development Bank and Xinjiang autonomous region supply and marketing cooperatives and other departments hope that the state will provide liquidity loans to the mainland's large textile enterprises with high added value and good returns, and link up loans with the use of New Territories cotton to activate some market demands.

Talking about this, Lv Yongmin, deputy director of Xinjiang supply and marketing cooperatives, told this reporter that the effective way is to collect and store part of Xinjiang cotton as soon as possible.

The Cotton Subsidy Policy for cotton pportation should also be introduced as soon as possible in Xinjiang.

Some people in the industry are also introspection. Xinjiang has become an important cotton producing area in the whole country and even in the world in just ten years. The speed of development is not surprising. However, "selling hard" and "bruising" have recurred repeatedly, which fully shows that the "white industry" is not yet mature.

From the perspective of cotton purchase and circulation, after the liberalization of the cotton purchase market in China, private enterprises broke the exclusive monopoly of the cotton purchasing enterprises of the supply and marketing cooperative system, especially the involvement of Wenzhou's hot money, making the competition more intense.

Due to the fact that most cotton and hemp enterprises in Xinjiang have not been reformed or reformed completely, redundant personnel and heavy historical burden, the management situation is generally not optimistic.

But in fact, it is too early for the private cotton enterprises to take the place of the main channel.

According to some cotton merchants in Wenzhou, cotton and hemp enterprises are bearing heavy burden, but at present, private cotton enterprises are facing more obstacles.

(Zhao Chunhui, Huang Yanding, Jian Gang)