How Can The Parties In The Cotton Industry Chain Achieve A Win-Win Situation?

"China's textile industry is losing its international market," Sun Huaibin, spokesman of the China Textile Industry Federation, said in an industrial meeting. The main reason for this situation is the widening of the cotton price difference at home and abroad.

The phenomenon of upside down is becoming more and more serious. Cotton price All sides have responded to the cotton industry chain. How can the cotton industry achieve sustainable development? How can the parties in the industrial chain achieve a win-win situation? At the 2012 China Cotton Development Summit Forum, cotton industry industry chain Representatives from different sides expounded different views on the current cotton policy and put forward some pertinent suggestions.

How about temporary storage?

In September last year, in order to stabilize the cotton market, the state normalized the measures of temporarily collecting and storing lint in the main producing areas, and established a temporary cotton storage and storage system. Although this measure has stabilized cotton prices and protected the interests of cotton farmers, it has not brought about a negative effect on textile enterprises: the domestic cotton price is higher than the international cotton price, which has greatly weakened the textile industry in China. market competition The management of cotton textile industry is at an unfavorable low level.

For the implementation of the temporary purchase and storage policy, the representatives of the cotton industry chain expressed different views.

"Cotton purchasing and storage policy is very important for stabilizing cotton planting and production in the current market situation." Lu Huaiyu, President of China Cotton Association's cotton farmers cooperative branch, pointed out that every policy should take into account the interests of all parties. The interests of cotton farmers should be considered. The interests of textile enterprises should also be considered, but not every party can achieve their own expectations.

Yang Shibin, President of the China Textile Industry Federation and President of the China knitwear industry association, said that the original intention of the cotton purchase and storage policy is undoubtedly good, and from the executive level, it is beneficial to cotton farmers at present. "But what we should pay attention to is that the main body of the contradiction before the implementation of the purchase and storage policy is cotton growers and cotton merchants. After the implementation of the policy, the main contradiction is transformed into cotton producers and textile enterprises."

As a leading enterprise in the textile industry, Sun Weiting, chairman of Huafu color spinning Limited by Share Ltd, also bluntly said: "from the perspective of macro policy, the current temporary purchasing and storage policy is the best policy, and the price is also more appropriate. However, this temporary purchase and storage policy is personally unsustainable and has a greater negative impact in implementation.

"The policy of temporary collection and purchase is a difficult choice." As the policy maker, Zhang Xianbin, director of the State Economic and Trade Commission of the national development and Reform Commission, said that the implementation of the temporary purchase and storage policy is to maintain the basic stability of domestic cotton prices and create a predictable market for production and business enterprises. Two is to protect the interests of cotton farmers, effectively prevent large-scale landslides of cotton planting this year.

"At the same time, we should also see that any policy is not perfect. From the perspective of stabilizing China's cotton production, we should pay a higher price for the purchase and storage, but not from the perspective of maintaining the competitiveness of textile enterprises." Zhang Xianbin said.

Policy formulation must not be divorced from the market.

Then how can cotton policy be formulated to take into account the interests of all parties?

"The formulation of any policy must proceed from the reality of the industry." Shi Jin Kai, director of China Cotton Group Co., Ltd. said.

Shi Jinkai's view was also supported by Sun Weiting. Sun Weiting believes that the formulation of the cotton policy should be transformed from the thinking and means of the planned economy into a complete market economy thinking and means. The temporary purchase and storage policy of cotton is a very effective measure. Instead, it should be replaced by depository system or consignment system, which is stored in the market way.

Yang Shibin also believes that "the best way to achieve sustainable development of cotton is to marketization, formulate a policy to protect the most vulnerable groups, and leave the rest to the market."

Gao Fang, executive vice president and Secretary General of China Cotton Association, also agreed that cotton policy formulation should be combined with marketization. "I think the best thing is to provide farmers with a bottom subsidy, and then let the market decide."

But at the same time, Gao Fang expressed another concern. "If we grant direct subsidies to cotton, the grain area will be challenged again. Therefore, the formulation of a perfect policy requires the government to also make more efforts in our industry."

Cotton production should be based on China

"If we want to maintain healthy and sustainable development of cotton industry, we must get through the supply chain of cotton and integrate the supply chain, which is an effective way to solve the contradiction between our industries." Sun Weiting said that cotton processing should increase its added value, and the cotton industry should also be subdivided. "Which areas of long staple cotton, which areas of fine cotton, have to be subdivided, subdivided quality standards are processed into subdivision products to meet the needs of customers after subdivision, so the price factor is not the main factor, value factors prevail, and can promote sustainable development."

For the sustainable development of cotton industry, Zhang Xianbin also said that China's cotton must be mainly based on domestic production, while maintaining the basic stability of cotton production and market prices is the necessary environment to promote the sustained and healthy development of the cotton industry.

"We have strong domestic demand, more than a billion people's demand for cotton, if we rely too much on the international market, who can supply us with so much? Second what price will it be?" therefore, China's cotton production must be based mainly on the domestic market, and imports can only be used as a supplement.

Views from all sides

The best way to achieve sustainable development of cotton industry chain is to marketization, design a big policy, protect the most vulnerable groups, and leave the rest of the market to the market.

- Assistant to President of China Federation of textile industry and Yang Shibin, President of China Knitting Industry Association

I strongly agree that cotton policy formulation should be combined with marketization. I think the best way is to provide farmers with a bottom subsidy, and then let the market decide.

Gao Fang, executive vice president and Secretary General of China Cotton Association

The formulation of cotton policy should be transformed from the thinking and means of planned economy into a complete market economy thinking and means. The temporary purchase and storage policy of cotton is a very effective measure. Instead, it should be replaced by depository system or consignment system, which is stored in the market way.

Sun Weiting, chairman of Huafu color spinning Limited by Share Ltd

The formulation of any policy must proceed from the reality of the industry.

- director of the China Cotton Group Co., Ltd.