Cotton Prices Soared Nearly 40% &Nbsp In A Month, And Quota Reform Is Imperative.

In just over a month, the price of cotton market has risen from about 18 thousand yuan per ton in the early September to about 25 thousand yuan per ton, which has risen by nearly 40%.

At present, China's new cotton has just come into the market, and the head of a textile enterprise in Chongqing told the China Industrial and Commercial Times reporter: Taking "329 cotton" as an example, the paction price has been close to 25 thousand yuan / ton.

All the way up, when will it come to an end?

In the office of Feng Xiuqian, director of Chongqing's Sichuan textile mill, Feng Xiuqian provided the reporter with a monthly contract price list of cotton in 2010.

The table shows that from January to October this year, cotton paction price rose from about 15 thousand yuan / ton to 25 thousand yuan / ton, and 70% in 10 months.

The momentum of the rise is relatively rapid. By the end of September, the seven ministries and commissions of the state jointly held a meeting to discuss the suppression of cotton prices. During the National Day golden week, cotton prices did not fall, but rose by 20%.

Chongqing light textile holding group Chongqing Changfeng ramie

Feng Xiuqian's worries were even worse.

The main processing trade of Chuan Jiang wool spinning is Jin Jiang's annual dyeing and dyeing capacity of about 2 million meters. In addition to the processing of raw materials, most of them are self operated export businesses. If the cotton price is calculated at present, the price will be about 0.5 yuan per meter. Therefore, after the completion of the existing contract and inventory, the export business will be completely shut down.

Feng Xiuqian said: "it is estimated that the maximum production will be 1 to 2 months."

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In fact, Peng and Feng Jun worry that the soaring cotton prices will jeopardize the entire textile industry.

After the severe financial crisis, China's textile industry has survived, but the sharp rise in cotton prices this time is likely to cause more serious harm than the financial turmoil.

Feng estimated that soon after that, China's textile exports will be reduced by 80%, and cotton spinning enterprises will stop production more than 50%, and about 50% of the enterprises will be halted.

He said: "this is a big industry involving 20 million people in employment. Many places are still mainstay industries. We do not want to see a devastating blow to the entire textile industry because of the high price of cotton."

What are the expedient measures to deal with the predicament faced by the textile industry? Feng Xiuqian said, let's control the quota of cotton imports and implement a comprehensive market-oriented operation.

He believed that after the release, it could still be collected. After the cotton prices fell, they returned to the original quota restrictions and played the role of macroeconomic regulation and control.

Peng Hongmin also believes that timely adjustment of the quota will be a great measure to alleviate the contradiction between supply and demand.

He said that the quota of the state has been exhausted this year, which requires increasing the quota to solve the thirst of enterprises.

It is understood that although the price of cotton in the international market has hit a new high in 15 years due to many factors, it is still about 30% lower than domestic cotton prices, which basically can be accepted by enterprises and enterprises have room for profit.

In addition, downstream products, including yarn, cloth, clothing and so on, can rise or fall? For this problem, Peng and Feng Jun believe that moderate price adjustment can be accepted by the market, and so is the actual situation.

But they think that if the price adjustment is too large, it will lead to a bigger chain reaction, and the market will not necessarily agree, so we must be cautious.

"After all, textiles are related to the lives of thousands of households, involving a wide range of things, not a huge increase in prices."

It is reported that the issuance of quotas is also concentrated on some large enterprises. Small and medium-sized enterprises, especially small businesses, have no quotas at all. They have long been on the market and have their own livelihood. There are also many injustices. Some quota indicators even fall to the hands of speculators, making them a big profit margin.

Peng and Feng Jun called on the state to crack down on malicious speculation and deliberately raise the price of cotton.