China Cotton Association: Recommends That The State Support Cotton Industry

The Cotton Research Institute of Chinese Academy of Agricultural Sciences conducted a full monitoring of the domestic cotton market in the first half of 2008. Yesterday, according to the information released by the Central Cotton Institute, it is estimated that the domestic cotton output will be about 7 million tons this year. However, the cotton purchase price will increase by at least 10% this year due to the 20% increase in the cost of cotton planting throughout the whole year.

China Cotton recommends that the state take macro-control measures to support the cotton industry.

According to the China Cotton Institute, the total output of cotton in China is expected to reach 7 million tons this year, but the premise is that the climate is normal in the middle and late this year, and there will be no major weather disasters and pests and diseases, and the average yield per unit area will reach 80 kg / mu in the first 3 years.

But there are many uncertainties in weather conditions this year. If the late high temperature and drought will be beneficial to cotton.

In addition, the key factors that affect cotton production this year are farmers' investment in later stage.

According to the survey, due to soaring agricultural prices, 1/3 farmers have changed the fertilization plan. One is to change the high concentration of compound fertilizer to low concentration, the two is to change the amount of fertilizer, generally reduce the amount of fertilizer 1/3 to 1/2, and even farmers plan to abandon fertilization.

As cotton purchase price is expected to rise far below the current cost of chemical fertilizers and other costs, farmers expect revenue decline, resulting in reduced investment, which is very high for high yield.

In the first half of the year, the total cost of cotton planting increased by 135.7 yuan / mu over last year, up 29.3% from the same period last year, and the annual cost growth is expected to reach 20%.

In the first half of the year, material costs rose by 109 yuan per mu, accounting for 80.3% of the increase, while fertilizer increased by 89.1 yuan / mu, accounting for 65.5% of the increase.

The cost of hiring workers increased by 26.7 yuan per mu, accounting for 19.7% of the increase.

The cost increase has weakened the income of farmers. The cotton mill has calculated that the price of cotton seed will rise by 15%, reaching 6.9 yuan per kilogram, and next year's production will be stable.

According to the proposal of the China Cotton Association, in order to stabilize China's cotton production, the state should take macro control measures to support the cotton industry, and study the purchasing guidance price as soon as possible.

As the price of fertilizer continues to rise, farmers' expectations of new cotton prices are constantly rising, and the basic principle that cotton yield is not reduced is the proposal of 328 cotton seed 6.6 yuan per kilogram for minimum purchase guidance price.

At the same time, the state should also carry out market acquisition for cotton.

Following the way of grain acquisition, the acquisition of new cotton to prevent price declines will ensure that the new cotton market is stable and the price is relatively reasonable, and the cotton farmers' income will not decrease.

In addition, the China Cotton Association also suggested that the state should expand the subsidy for good seed cotton, subsidize the implementation of the GSP, increase the number of cotton seeds and increase the number of improved varieties, and increase the intensity of subsidies, raising subsidies from 15 yuan / mu to 30 yuan to 50 yuan / mu.