Ministry Of Finance: It Is Not Suitable For China To Cancel The Slip Tax On Cotton Imports At This Stage.

The Treasury recently made it clear that it is not appropriate to cancel this stage.

It is understood that China's cotton demand is expected to be 11 million tons this year, while domestic cotton production is expected to be only 6 million 800 thousand tons this year, and the huge cotton gap will depend on imports.

Since January this year, cotton prices have risen all the way, and the average price of cotton has risen from 15000 yuan / ton to 18100 yuan / ton, or 20.6%, while the average price of cotton in September last year was 13000 yuan / ton.

The main reason for this situation is the reduction in cotton production last year and after the international financial crisis. The global economy began to recover, and the domestic textile enterprises' foreign trade situation improved and the demand for cotton increased significantly.

Visible, less demand, more stimulation.

In June, in order to balance the high cotton price situation, the State Council has approved the cotton import quota of this year to mention 3 million 600 thousand tons, while selling 600 thousand tons of reserve cotton to the market. At present, this policy is being implemented step by step.

After mid July, cotton prices dropped slightly. In August 30th, the price of cotton showed a price of 18100 yuan / ton, compared with the peak of 18600 yuan / ton, which dropped by 500 yuan / ton.

"The problem is that international cotton resources are tight, and India restricted cotton exports in April.

Although the state has issued additional quotas for cotton imports, some enterprises have reflected the difficulty of placing orders.

This year's new cotton will probably be reserved in December, and the impact of this policy on cotton prices is limited.

China cotton association related personage introduction.

This year, the price of agricultural products has generally risen, which has led to a "high level of cotton prices".

In fact, although cotton prices are a great fear for cotton textile enterprises, the enthusiasm of cotton growers is not high.

The first reason is that the comparative income of cotton is low. Compared with grain, the average income per mu is less than 300 yuan, much less than vegetables.

Two, cotton subsidy policy is not as good as grain.

Enterprises and associations in the cotton spinning industry have repeatedly suggested that the Ministry of Finance replace the sliding tax with subsidized cotton farmers.

"It is difficult to subsidize cotton farmers at present, because the state must first ensure grain production.

However, this year, cotton seed subsidies have been popularized across the country.

China Cotton Association official said.

The Domino effect produced by high cotton prices is adversely affecting the following enterprises such as weaving, clothing and so on.

Xu Wenying said that the shortage of raw materials has raised the price of cotton yarn, and cotton textile enterprises are doing well at present.

On the other hand, due to the large number of domestic garment manufacturers and fierce competition, the survival cost of garment enterprises has increased, but they still dare not raise their prices in foreign trade exports.

Similarly, the printing and dyeing weaving enterprises are under the dual pressure of upstream and downstream prices, and have become the "victims" of high cotton prices.

From 2005 to May, China began to levy quasi sliding duties on imported cotton outside the tariff quota, with a sliding range of 5% to 40%.

The levying of slippery quasi tax is equivalent to setting the bottom line for the price of imported cotton and supporting the price of the domestic cotton market.