The Downturn In The Textile Industry Has Made It Difficult To Make Domestic Cotton Policies.

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In terms of external pressure, there are various difficulties that can hardly be described by themselves.

First, the weak textile consumption in the lower reaches of the world has led to high inventories.

For the prediction of production and inventory data, the US Department of agriculture and the International Cotton Advisory Committee have different statistical caliber, but their views are basically the same.

Since 2012, the US Department of agriculture has increased the inventory data in monthly supply and demand reports for several times.

In February, the forecast of global stockpiles of 13 million 232 thousand tons in the supply and demand report was adjusted to 13 million 569 thousand tons in March, and then to 14 million 386 thousand tons in April's supply and demand report.

Among them, the April report mainly raised the initial inventory in India by 762 thousand tons.

The supply and demand report in May continued to raise the end inventory of global cotton and reduce cotton consumption.

China's inventory consumption ratio is as high as 68.4%. After many adjustments, the US Department of agriculture made a difference of 2 million 500 thousand tons before and after the 2011/2012 global consumption forecast, which reduced the consumption of China to 1 million 200 thousand tons to 9 million tons.

Due to China's cotton price protection policy launched last year, a large number of foreign cotton has been concentrated in China, and China's domestic inventory problem is even more serious.

The International Cotton Advisory Committee forecast that China's inventory reached 5 million tons this year, more than doubled over the same period last year, but the stock of other countries in the world increased by 14%, or 8 million 100 thousand tons.

Domestic policy makers are in a dilemma because of sluggish domestic textile demand and high inventory data.

On the one hand, the import of cotton has been started since last year and has continued to the present.

The internal and external spreads are as high as several thousand yuan, and China's imports are heavy.

The issue of issuing no import quotas is a headache for the country.

The quotas and the price of foreign cotton have been given stable support. The price protection of national policy since last year is not just domestic cotton farmers. A large number of imports have made China become the Savior of the global cotton farmers in the economic downturn.

How to calculate this business is a loss.

A large number of imported inventories, if they can work, have experienced a period of high cost digestion, and can always return to downstream consumption.

But the problem is that the lower reaches of the doldrums do not provide such an opportunity, just like mute eating Coptis chinensis, so much cotton is absorbed, and how to digest it is also a problem.

If the quota is not granted, domestic textile enterprises will use high cost cotton to face the main competitive rivals such as Southeast Asia.

Not to mention other countries such as the adoption of zero tariff or other measures to support the import of cotton, to further reduce the cost of enterprise procurement, and thus widen the gap between China and other countries cotton spinning costs.

The government can not break the promise of farmers' purchase and storage.

One side is cotton farmers' income, the other is

I am afraid it is difficult to achieve the best of both worlds.