Rise And Fall Of A Cotton Plant

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Sitting in a Geely taxi in Xiajin County, the driver told reporters that his family sold cotton last year to 6 yuan a kilogram. He regretted that he sold it cheap, and then cotton prices soared to more than 7 yuan.

However, at that time, in the face of the purchase price of 6 yuan, cotton farmers could not believe that the average annual cotton price was three yuan five or six.

Cotton spinning enterprises are not afraid of rising cotton prices. If demand is strong, the additional cost can be pferred to downstream industries.

One industry insider said.

"Buy up but not buy".

As cotton prices go up, textile companies are starting to grab cotton.

Hot money speculation is believed to have played a role in this.

According to legend, some small factories bought a cart of cotton and made a big profit.

The wind has changed greatly since the end of last year.

In the face of soaring cotton prices, the state has made adjustments to maintain the normal market order.

"It is mainly hoped that big enterprises can shoulder their social responsibilities."

Xia Zhilin, President of the Provincial Textile Industry Association, said.

In April this year, textile leading enterprises lowered the purchase price of lint cotton for 5 times in a row. The industry believes that this will aggravate the downward trend of cotton prices.

Yin Qinzu, deputy director of Xiajin small and Medium Enterprises Bureau, said that most of the enterprises' stock purchase price of lint was over 28 thousand per ton, and the market in May 23rd had dropped to 23 thousand.

Protective price was introduced

Cotton prices have fluctuated violently, and many cotton farmers have also become victims.

There are less than 10 households selling cotton last year in Dong Jia village, a North Street Subdistrict Office in Xiajin County, with more than 200 households.

When the new cotton comes into the market, those Chen cotton will inevitably encounter quality degradation.

In March 30th, China's cotton temporary purchase and storage plan was promulgated. It is decided that during the period from September 1, 2011 to March 31st 2012, once the standard grade lint price is lower than 19800 yuan / ton for 5 consecutive working days, it will initiate policy purchasing and storage.

But this has caused many disappointed sighs.

Before, cotton spinning enterprises expect the new deal to play a role in supporting cotton prices.

"But in fact it gave us the expectation of further price cuts."

Zhang Dejiang, owner of Xiajin rite Textile Co. Ltd.

The price of lint protection is converted to seed cotton price, which is about 4 yuan per catty, much lower than the market price at the beginning of April.

For Dong Jia village's cotton farmers, the cotton price of 4 yuan / Jin is also very difficult to accept.

They calculated an account: an acre of cotton generally can receive 500 Jin, according to 4 yuan per catty, can sell more than 2000 yuan, eliminates the seed, the chemical fertilizer, the pesticide and the irrigated land expense, also has left several thousand yuan, the farmer has been busy half a year's manual investment not to count.

Xiajin County farmers per capita cultivated land is only 1 acres.

Not yet near dusk

"Under the current circumstances, we must stand up, or we will lose a number of enterprises."

During the telephone conversation with the head of the Wei Qiao Textile Group, Xia Zhilin indicated that he should try his best to keep the price of cotton yarn.

Between words, there is sadness.

The crisis is serious.

In May 23rd, when the reporter interviewed in the Provincial Textile Association, the association led by two vice presidents rushed to all parts of the province for emergency investigation.

In retrospect, the textile industry has flourished in Britain, the United States, Japan and South Korea. With the change of comparative advantage among countries, international industrial pfer is inevitable.

Has China lost its advantages in cotton spinning?

In this regard, Xia Zhilin believes that even the United States, textile practitioners still account for 8% of the number of industrial workers.

Compared with the surrounding emerging countries, China's textile industry has the advantage of having a complete industrial chain, a complete range of goods and quality assurance, which can meet the "one-stop" procurement needs of foreign businessmen.

Although profit margins have been greatly compressed, compared with other textile enterprises, Dezhou Heng Hua Textile Co., Ltd. is still relatively normal in terms of production and inventory.

To a large extent, this has benefited from its diversification strategy.

In the past, only old cotton textile enterprises were made pure cotton. At present, polyester has accounted for 1/3 of raw materials, and they have developed new fibers such as soybeans, corn, milk and pearls.

This road is considered by the industry to stick to it.

Faced with the plight, small and medium-sized textile enterprises urgently need to step out of the low-end links of the "Smiling Curve", strengthen the research and development of new technologies and products, speed up the renovation and upgrading of equipment, and improve product grades and added value.

At the same time, Xia Zhilin thought that we should strengthen the construction of characteristic industrial clusters and lead the small and medium-sized enterprises to form new competitive advantages with the help of leading products.

Xiajin is also working in this direction.

Cai Yupu, the county magistrate, introduced the plan to invest 18 billion in 3 years and make the five leading industries, including cotton spinning, to build Xiajin into a well-known cotton textile city.

Relying on the advantages of "spinning", a complete industrial chain with "cotton processing, cotton spinning, weaving, printing, dyeing and clothing" is formed.

"Textile industry is not a sunset industry."

Xia Zhilin believes that the textile industry should be regarded as a matter of national economy and people's livelihood.

Shandong textile industry has 2 million employees, not an industry that can be easily ignored.

Even if we do not use executive power, the government can at least suppress the rumours of export tax rebates as soon as possible, helping to end the market wait-and-see situation.

Even if the tax rate is really down, "let another boot fall" can also make the market risk expectations determined. It is better than being hesitant now.

Xia Zhilin looked forward to it.