Wang Tiankai: "The First Fire" Burned To Cotton Price

Approved by the Ministry of civil affairs, China

Cotton is the biggest problem in my mind.

Cotton is the most important raw material in the textile industry, but it is a long-standing problem in the industry.

Cotton prices soared from 17000 yuan / ton in May 2010, and rose to nearly 35000 yuan / ton in November 2010 and February 2011, and Chinese textile enterprises encountered unprecedented difficulties in the past two years.

According to the Ministry of industry and information technology, in the first 7 months of 2011, the overall profit margin of small and medium enterprises was less than 3%, and 60% to 70% of SMEs faced serious survival difficulties.

According to the latest rural policy implementation report released by the Ministry of agriculture's Rural Economic Research Center, this year cotton prices surged rapidly and fell sharply, from the historical high price of 30733 yuan / ton in March to 19329 yuan / ton in August.

In the late stage, with the introduction of the detailed rules for the state's temporary purchase and storage, cotton prices remained stable.

"Nothing is worse than the sharp fluctuation of price. It is impossible for price to fluctuate, but there is no such big fluctuation. We have been seeking relative stability," Wang Tiankai said.

He believes that stabilizing cotton prices has become a major issue affecting the overall situation and must be put on the agenda.

The sharp rise and fall of cotton prices will largely affect the direction of the pformation and upgrading of textile enterprises.

"Cotton problem is the biggest problem in my mind, cotton prices fluctuate, cotton spinning enterprises can not get through, chemical fiber enterprises will be affected immediately, home textiles and clothing will also be affected, and ultimately affect the equipment manufacturing industry.

The director of our cotton mill is concerned about cotton. Last year, if cotton works well, it will far exceed the profit he has made in his technological pformation and management, "Wang Tiankai said.

In recent days, he spoke as chairman of the new China Textile Federation, speaking at the third member conference. He said that he will further play the role of the "joint fleet" in the future, strengthen the collaborative, efficient and sustainable service functions of the Federation, focus on the compilation and publication of the textile power platform, strengthen and enhance the analysis of statistics, information and economic operation, strengthen the study of major policy issues, reflect the policy demands, actively promote the key work related to the overall development of the industry, and strengthen the five tasks of the political and organizational guarantee of the overall key work of the Federation.

The cotton problem is one of the biggest problems in the textile industry at present.

Last year, prices rose, and the whole industry chain achieved good returns.

The current downturn in cotton prices, let textile enterprises, cotton enterprises, cotton farmers are in trouble.

"A lot of enterprises reflect that the price of cotton is going down now, but sales are rather difficult. Why? Now we are all waiting to see whether we can still fall. Instead, there is a problem of poor circulation in the industry chain," Wang Tiankai said.

He said that wait-and-see sentiment was pmitted to the chemical fiber industry, and some viscose fiber enterprises lost 1000-2000 yuan to sell, which are the consequences of price fluctuations.

And the fall in prices may foreshadow the cotton price rise again next year.

Because of the weak foundation of cotton production and the substantial increase of production cost, price fluctuation has caused the whole industrial chain to encounter difficulties, and the impact on cotton growers has been the biggest. This has seriously affected the enthusiasm of cotton growers, and the planting area of some cotton producing areas has been decreasing.

The pattern of interests is very difficult to break.

To stabilize cotton prices and seek a fair competition environment, the textile industry has done a lot of research and calls for years.

As a member of the CPPCC National Committee, Wang Tiankai wrote this question to his proposal, hoping to abolish the slip tax and cotton import quota management system on the macro policy, and open up the circulation link of cotton, so as to collect and store more rationally.

But the resistance is still very large, and the interest pattern is hard to break.

The so-called sliding tax, also known as sliding tax, is an import tariff imposed on the same price of the same commodity in the import tariff according to the market price standard.

This tax rate is low or no tax on the price of high-grade commodities, and the rate of low prices is high.

In order to reduce the impact of imported cotton on the domestic market and protect the interests of cotton farmers, China began to levy a sliding tax on the import quota of cotton quotas outside the tariff quota in May 2005. The sliding rate ranges from 5% to 40%.

The Levy of this kind of tax is equivalent to setting the bottom line for the price of imported cotton, supporting the domestic market price of cotton, and making the domestic cotton price higher than the international cotton price, which brings certain pressure of cost increase to cotton spinning enterprises.

"This problem has been involved in the overall situation, the face is very wide, the interests of the pattern is very difficult to break through, the problems are very serious, the high-level solution is also difficult, the complexity is here," Wang Tiankai said.

This year's proposal was held as a key proposal, and a high-level Coordination Committee was held. All relevant ministries and commissions such as the national development and Reform Commission, the Ministry of agriculture and the Ministry of agriculture were invited to participate.

The conclusion of this conference is that he has basically understood each other's situation, but needs to communicate in all directions.

The divergence of opinions is mainly focused on the abolition of the sliding tax, and the fall in prices may impact the interests of cotton farmers.

Therefore, when we extract the quasi sliding tax, the Ministry of Agriculture says no, and the upper class will retreat because farmers are the first.

There are also suggestions that we can subsidize cotton farmers in the same way as the United States, but the Ministry of finance can not afford it. We also think that China's cotton production is different from that of the United States. We are thousands of households and are hard to subsidize.

"The pursuit of market economy is fair competition. In the first two years, the veil of Pakistan sold to us is cheaper than ours. The cotton market in the domestic market is higher than the international market. Finally, the competitiveness of cotton spinning enterprises is gone. Who will buy cotton?" Wang Tiankai said.

He believes that the greatest harm to farmers' interests is cotton can not be sold, and cotton must first sell cotton textile enterprises to survive.

The textile industry association has also done a lot of calculation and Research on this issue, and submitted a report to the State Council. Therefore, the outside world again speculated whether it would cancel the sliding tax.

"But what I know is that when I walk down the road, I still have a lot of resistance. Every department is talking about their opinions. It seems that we have to think about how to do something more effective."

He said he would change his mind to solve this problem, first of all, change the way of communication.

"The report can not solve the problem, let's start with the communication between the heads of the ministries and departments, and listen to their views."

"Whether it works or not, it needs to be done."

In addition, it is necessary to change the way of research, not only to study the internal problems of the textile industry, but also to study other units' problems, not only to study problems, but also to propose feasible solutions.