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Cotton Prices Skyrocketed, Cotton Enterprises Are Under Heavy Pressure &Nbsp, And The Industry Is Eager For Strong Government Response.

2010/11/4 10:39:00 36

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The sharp rise has led to a surge in prices of domestic agricultural products, of which cotton prices have also reached record highs, surging 10000 yuan / ton in 2 months.

Although there was a slight adjustment in the 1105 contract of cotton futures at the end of October, it still had a good start in November. The 3 day intraday hit 29980 new highs. On the same day, China's cotton price index CC Index 328 has reached 27701 yuan / ton.

Cotton prices have skyrocketed to the downstream.

Textile enterprises

Causing great pressure.

The head of production and operation of a large textile enterprise in Hebei said that with the increase in the cost of cotton, most of the downstream enterprises could not accept the current price, and the reserve risk under high price was also very high, which led cotton enterprises to dare to reserve too much cotton.

In terms of production, at present, the company has adopted ways to adjust product types, such as increasing the use of non cotton fibers such as polyester, nylon, man-made cotton, or the mixture of cotton and polyester, cotton and nylon and so on, so as to reduce the use and cost of cotton.

But at the same time, as an export oriented company, the company's annual export to Europe, America, Japan and Korea has reached 80% of the total production volume, and the cost increase and quality reduction have a very negative impact on exports.

In the current situation, the market usually considers that the production is late and the market is late.

Objective factors

Caused by this, but the person in charge thinks that reducing production is not enough to fry cotton prices to such a high level.

In the case of insufficient cotton reserves, the initial allocation index is too high, the auction has not the highest price limit, the most important thing is the improper timing of cotton throwing and storage, resulting in speculation among the industry, which is an important reason for pushing up the cotton market price.

The official said that enterprises are eager to reduce cotton prices, but the key lies in the government's macroeconomic regulation and policy implementation efforts.

He believes that macro regulation is the responsibility of the government, and how the service-oriented government serves the enterprises requires the following aspects.

First of all, the management of imported cotton should be released as early as possible, giving enterprises 365 days' freedom. Since it is a market economy, we should let it go all the way. We should not be limited to import quotas and let enterprises operate in accordance with market principles.

Second,

Textile enterprises

Too much tax, too much labor intensity, low treatment, the turning point of demographic dividend, disorderly growth of industries and disorderly expansion of production capacity have all restricted the development of the industry. Therefore, the state should make overall plans for the industry through means of macroeconomic regulation and control.

Third, cotton acquisition, procurement and pportation should have corresponding management measures.

In addition, the official also said that at present, enterprises in the industry self-discipline has done very poorly, many enterprises compete for the market by competing for price, and ultimately make profit space occupied by foreign enterprises, but also need to be improved.

Finally, the person in charge said: "cotton prices are so high this year, farmers will plant cotton next year, no one will grow grain, how will China's grain market be controlled? How can we protect cotton farmers' interests next year?" obviously, this is not only a solution to the current predicament.

"In the long run, what should we do in the future? How to balance the interests of all parties?" the government should emphasize again on the macro regulation and control.