China Cotton Association: The Plight Of The Textile Industry Is Not Conducive To The Increase Of Cotton Farmers.

The textile industry in China is a labor-intensive industry. More than 80% of the workers come from rural areas. The main raw material is cotton, which involves 20 million textile workers and 140 million cotton farmers.

Recently, reporters learned from the China Cotton Association that at present, due to changes in the international economic environment, coupled with domestic macroeconomic regulation and control policies and rising costs, and other factors, the textile industry is facing more pressure to survive.

The difficulties of textile enterprises also led to the weakening of domestic cotton demand, and the market was light, with large domestic cotton stocks.

Experts analyzed the emergence of this wave of market, on the one hand, is conducive to the survival of the fittest in the textile industry, accelerate structural adjustment, large and powerful enterprises, despite the decline in profit margins, but still able to tide over the difficulties.

Domestic textile enterprises with strong strength and large scale reflect that the cost increases and the price of finished products does not rise, resulting in a 3-4 percentage point drop in textile profit margins, from 8-10% to 5-6%, and large enterprises can still afford it.

But on the other hand, for the vast majority of small and medium enterprises whose profit margins are generally in the 3-4%, a few percentage points of profits will be unbearable.

Many local cotton associations reflect that the actual situation of enterprises is far less optimistic than that of statistical reports.

In order to obtain bank loans, some enterprises have reported high spinning output; some enterprises reported profits, including real estate, securities and other business income, disguise the difficulties of the main textile industry.

According to statistics, in the first quarter of 2008, the cumulative yarn production in China was 4 million 580 thousand tons, an increase of 10.2% over the same period last year, and the growth rate dropped by nearly half.

At present, the difficulties of textile industry are mainly reflected in the fact that exports are blocked, and there is a process of stimulating domestic demand. Therefore, the cotton association suggests that moderate and flexible policies should be adopted in cotton imports and textile exports to help the textile industry tide over difficulties.

One is to adjust the import tax rate of cotton, the two is to increase the export tax rebate rate of textile and clothing, and the three is to guarantee the supply of liquidity for textile enterprises.

Since June, the state has lowered the tax level of imported cotton, which is conducive to ensuring adequate supply of domestic cotton market and has a positive effect on reducing the cost of cotton production in textile enterprises.

But at the same time, the Cotton Association believes that textile enterprises are facing more difficulties this year. The reduction of import tariffs alone can not solve the problem. As the actual situation changes, it is also necessary to adjust policies related to cotton and spinning enterprises, play a combined effect and deal with them in many ways.

In recent 2 months, new cotton will also be on sale in August.

Cotton prices have been launched in previous years, but there is no sign of rising this year.

When the textile is motionless, the cotton price is difficult to move.

Once the textile enterprises stop production and lose production due to losses, they will have an impact on the sales of domestic cotton and will directly damage the vital interests of domestic cotton growers.

This is a complete industrial chain. It can be seen as a whole.

According to Cotton Association, the cotton planting area in China this year is 88 million 160 thousand mu, which is basically the same as last year. The overall meteorological conditions are conducive to the growth and development of cotton.

Whether there is worry in nature or cotton prices?

Since last year, the prices of other agricultural and sideline products have risen sharply. In February and March this year, the state raised two times the lowest purchase price of rice and wheat, and the comprehensive direct subsidy and seed subsidy of grain crops increased further.

With the increase of the cost of planting cotton, such as chemical fertilizer, pesticide and labor, cotton growers are looking forward to the price of new cotton this year. Otherwise, they will not benefit the increase of cotton farmers and affect the enthusiasm of cotton growing.