Cotton Price Rise Is Not A Problem, But Low Efficiency Is Not A Big Problem.

After the Spring Festival, cotton prices soared all the way, bringing greater pressure to the textile enterprises.

"Cotton price rise is not a problem. Cotton growers are not a big problem because of low efficiency. Cotton prices should be considered in the long term from the perspective of the entire industrial chain."

A few days ago, Zhang Pengchao, deputy secretary of the Wendeng textile enterprise Yida group, was interviewed by an Economic Herald reporter.

Cotton farmers' income is not high.

According to the quotation of China cotton information network, the 328 level in March 3rd.

But in Zhang Pengchao's view, this increase is not high. "Now cotton prices are too low, cotton farmers' income is not high, cotton planting enthusiasm is very difficult to mobilize, what is most needed to do is to protect the interests of cotton farmers."

He said that the process of planting cotton is more complex and requires a lot of manpower costs, and also has to deal with the impact of natural disasters and pests. The cost is high and the income is low, which has frustrated cotton farmers' enthusiasm.

The reduction of planting area directly affects the supply of cotton.

Wei Linyan, senior analyst at Jinqiao textile network, said that last year, China

"Now that cotton is wasted a lot, facing the contradiction between supply and demand, the efficiency of cotton utilization should be taken seriously."

Zhang Pengchao said.

As a labor-intensive enterprise, textile enterprises not only have to face the problem of rising labor costs, but also face the rise of raw material prices and cost pressures.

However, through technological innovation, enterprises can improve labor efficiency and improve cotton utilization.

In Zhang Pengchao's view, the increase in cotton prices can promote the pformation of enterprises on the one hand, on the other hand, it can improve the enthusiasm of cotton farmers, expand the area of planting and increase the supply of cotton.

"Price increase is not a problem. If cotton growers do not grow cotton, textile enterprises can not buy cotton, that is the real big problem."

Zhang Pengchao said.

Industry experts predict that there will be more than 6 months from the September cotton market listing, and there will be room for further increase in cotton prices in the next few months.

The rising cotton price is very beneficial to raising farmers' enthusiasm for cotton planting.

Cotton prices will run high

Some analysts said that due to the large reduction in cotton production in 2010, the supply of international cotton was insufficient.

Zhang Pengchao believes that cotton prices will not fall again within a certain period of time, and there will still be room for improvement in the future.

People in charge of China cotton reserve management company said that due to the serious psychological reluctance of cotton enterprises, most of the textile enterprises had sufficient stock of raw materials and had a strong wait-and-see mentality. It is expected that domestic cotton prices will run high in the near future, but the rally will be restricted.