China's Cotton Textile Industry Is Facing The Dilemma Of Cotton Textile Enterprises

In order to protect the enthusiasm of farmers to grow cotton in the new year, in March 1st, the China Development and Reform Commission and other departments jointly formulated the "2012 cotton temporary purchase and storage plan", the standard grade lint to the warehouse price was 20 thousand and 400 yuan per ton, compared to the previous year increased by 600 yuan per ton.

Jin Pingshun said: "raising 600 yuan per ton, raising about 0.2 yuan per kilogram of seed cotton, increasing revenue per mu is about 50 yuan, which is still much lower than that of grain."

In recent years, China's

"Although not losing money, it can't earn money.

Grain prices are getting higher and higher, and labor costs are becoming more and more expensive. If it's always the price, it's better to grow wheat in the fields and go out to work. "

Last year, the same species of 10 mu of cotton in Shandong Dezhou City Wucheng County Yang Zhuang Township farmer Ann Feng Chen said.

According to Ma Junkai, Deputy Secretary General of the cotton association of Dezhou City, Shandong, the cost of cotton planting has increased in Dezhou last year. The direct cost of machine farming, seeds, fertilizers, pesticides and other direct labor (excluding manual labor) has reached 480 yuan / mu, and the average land price is 450 yuan / mu, and 380 yuan per person for picking up cotton.

The output value of cotton per mu is 1715 yuan, according to the calculation of 237 kg of seed cotton per mu and the average selling price of 7.60 yuan / kg.

If farmers grow their own land and pick up their own cotton, after deducting the cost of direct planting, they earn 1321 yuan per mu, 300 yuan less than grain.

If rented land, hire cotton pickup, mu income only 491 yuan.

Because of the relatively low income, some farmers began to give up seed cotton and turn to grow grain crops.

According to Ma Junkai, cotton planting area in Dezhou has reached about 2000000 mu in previous years, but it has been reduced to about 1600000 mu last year.

According to the situation of wheat seeding this year, the cotton planting area in Dezhou will be reduced by 25% to about 1 million 200 thousand mu.

The Cotton Research Institute of Chinese Academy of Agricultural Sciences has recently conducted a survey of 120 designated counties and 2962 designated farmers in 16 provinces and autonomous regions in China, indicating that cotton planting area may be reduced by 6.1% in 2012.

It is proposed to raise the price of temporary purchase and storage by 5%.

According to the price of 19 thousand and 800 tons last year, that is to say, 990 yuan per ton.

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The annual storage price of 20 thousand and 400 yuan per ton is lower than that of the mainstream market of 20800 yuan / ton.

On the whole, the state's cost considerations for the downstream textile enterprises have been enhanced.

Since 2011, the complex and changeable economic situation has brought great challenges to the global textile industry represented by China's textile industry. A series of factors, such as labor costs, financing costs, appreciation of the renminbi, and blocked demand in Europe and America, have resulted in the deterioration of the operation of most of the textile industry in China.

"Vietnam, India and other places are cheaper, and our products are under increasing competition pressure."

Ren Quanyuan, general manager of knitted Limited by Share Ltd of Ji'nan head of state, said that the company has increased wages by 20% last year to stabilize its employees. If the cost of cotton prices increases substantially, textile enterprises will be more difficult.

According to the China Textile Industry Federation data, excluding price factors, the number of textile and garment exports in China increased by only 0.5% over the same period in 2011.

Industry profit growth continued to slow down, from 1 to November in 2011, representing a 27 percentage point decline in growth.

Customs data show that in January this year, China's textile and apparel exports totaled 21 billion 519 million US dollars, down 0.42% compared to the same period last year.

Ma Junkai said that the price of cotton in China is higher than that in the international market, which weakens the competitiveness of China's textile industry.

The price of cotton purchase and storage in the new year formulated by the state is fully weighed against the interests of cotton farmers and textile enterprises.

The industry suggested that China's textile enterprises must pform as soon as possible, take the high-end product line, and get rid of the past relying on low labor development mode with higher technology content and added value.