Xinjiang Grants Subsidy Policy To Promote Cotton Industry Development In Xinjiang

As one of the most important economic crops and industrial textile fibers, small cotton plays an important role in the development of national economy.

Xinjiang as

The main producing areas play a decisive role in China and the world. Its output accounts for about 10% of the world's total output, accounting for 33% of the total output of the country.

About 85% of cotton sales are pported to the mainland every year in Xinjiang, so it is very necessary to study cotton pportation in Xinjiang.

In order to help solve the problem of high pportation cost of Xinjiang's cotton far away from the mainland sales area, promote the sale of Xinjiang cotton and protect the interests of Xinjiang cotton farmers, the Ministry of Finance issued a subsidy policy for Xinjiang cotton railway pportation.

The cotton produced and pported through the railway to the mainland sales area in Xinjiang shall be subsidized without any length or grade.

The cotton processing and purchasing enterprises, business enterprises and textile enterprises with the ownership of the outgoing cotton can enjoy government subsidies, which greatly improves the market competitiveness of Xinjiang cotton to a certain extent, making railway pportation the main channel for Sinop cotton pportation.

Present situation

Transport bottlenecks encountered

Since December of last year, the Ministry of Railways has given priority to arranging the pport of cotton wagons in Xinjiang, increased the pportation of national cotton reserves, and the pportation of commodity cotton has been difficult.

It is very unstable. Because Xinjiang cotton has a certain period of pportation through the railway to the textile factories in the mainland, so the textile enterprises purchase cotton and buy textile products nearby.

Therefore, the sale of cotton to the mainland has become the first choice for many cotton enterprises. Because the price of cotton is very pparent, cotton enterprises and textile enterprises have a small profit, so they can only choose relatively inexpensive railway pportation on pport.

Due to the limited number of wagons for pporting cotton and the large number of cotton to be pported centrally, it is bound to produce the stage strain of cotton pport wagon.

In the rush hour of pportation, the loading capacity of Xinjiang is less than 100 vehicles, which is far from meeting the cotton demand of textile enterprises. Therefore, pportation problem has become a main bottleneck factor restricting the normal development of cotton market.

Railway pport capacity is tight, road pportation price is high.

In recent years, cotton prices in China have experienced several big fluctuations in roller coaster style. The panic psychology of cotton and textile enterprises has intensified year by year. They are reluctant to keep cotton on the Xinjiang platform for a long time. So everyone rushing to rush for pportation, and a large number of cotton piled up platforms will cause further pressure on Xinjiang cotton pportation.

In addition, according to the domestic needs, the coal, oil, natural gas and chemical industry were pferred to the important position of the railway departments by the railway departments. Cotton pportation was pferred from "first class pport materials" to "two grade pport materials", which made the pportation problem of a large number of cotton worse.

Due to the shortage of railway pportation, a small number of enterprises are forced to use road pportation when the shortage of raw materials and railway pport can not be pported in time, but the cost of road pportation is much higher than that of railway pportation.

Other enterprises in order to speed up the delivery speed, the shipment of the South Xinjiang platform to the North Xinjiang platform to ship, so that not only to pay more than a warehouse fee, but also to pay more than two pport stations between the road freight, but converted through road pport is still higher than the cost of railway pport.

Other problems

Facing the current complex international economic situation, the RMB exchange rate changes frequently. The order of textile enterprises often takes months. If the raw materials can not be supplied in time, the enterprises not only have to bear the risk of liquidated damages because they can not deliver the goods in time, but also bear the settlement risk brought by exchange rate changes, which will directly affect the market competitiveness of enterprises.

However, in order to survive and take account of the opportunity cost, enterprises still have to choose road pportation in order to ensure that production is not affected.

Since the beginning of last year's purchase of new cotton in September of last year, cotton purchased by some enterprises has been stored for several months at the pport station, and some have not issued a few cars so far. They not only bear the risk of price changes due to backlog for a long time, but also face the high cost of finance that can not be returned in time.

industry

Derivative economic effects of railway pportation

In order to meet the normal production and avoid unnecessary losses caused by the failure of full load production, textile enterprises in order to avoid operating risks caused by frequent price changes, enterprises are racking their brains for shipping problems, and a series of economic questions naturally arise.

The rapid delivery of cotton is a difficult problem that many enterprises need to solve at present. Therefore, in order to deliver cotton in time, various enterprises will deliver goods through various measures, which will inevitably happen in the form of money and other shady pactions.

Shipping stations and railway related departments will also take advantage of this opportunity to make profits for themselves.

Under the temptation of this kind of money and material, there are bound to be some people who can not resist temptation and cause the emergence of various commercial corruption phenomena, which seriously weakens the function of market competition mechanism to effectively avoid the inefficient allocation of social resources.

Yes

Chain fluctuation produces amplification effect.

In order to effectively prevent fire accidents in the railway pportation, the railway pportation safety supervision department requires that the moisture content of the cotton bags pported by railway must not exceed 10%, and the processing enterprises must replace the original wire packing with plastic steel packaging.

In order to deliver the goods in time, the cotton enterprises have to change the baling silk, and reprocessing the cotton bags with a moisture content of more than 10%, which will largely raise the production cost of the enterprises to a certain extent, thereby reducing the overall profit margin of the enterprises.

Due to the large share of cotton in the total cotton in Xinjiang, the use of a single mode of railway pport will lead to short supply and demand imbalance in the cotton market if the cotton can not be pported to the mainland in time when capacity is tight.

As a result, the actual price of cotton will increase substantially in the short term.

Because of the asymmetry of information, the main reason for enterprises to judge the price of cotton is that the supply capacity is decreasing. The cotton purchasing is more difficult and the cost is higher in the later stage, and the cotton purchasing is expanding at this stage.

As the upstream commodity of the textile industry chain, the price increase of cotton will compress the profit space of enterprises to the next level industrial chain step by step, and the enterprises in the industry chain will rapidly enlarge under the "Butterfly Effect".

countermeasure

Establishing cotton supply and demand information platform

(1) actively promote the construction of Xinjiang's cotton supply and demand information platform, so as to prevent cotton from rushing to foreign trade in the short term.

Cotton is an important part of Xinjiang's "one white and one black" economic strategy. In the long run and overall consideration, we must firmly grasp the cotton strategy if we want to develop Xinjiang's agriculture for a long time.

As a kind of industry public goods, the government is duty bound to supply the cotton.

Therefore, the government should establish a supply and demand information platform for cotton, which can effectively avoid the blind procurement of cotton demand enterprises, and make the cotton market develop healthily and rapidly, thus leading to the cultivation and production of cotton in Xinjiang. At the same time, it can also eliminate the disorder competition of cotton demand enterprises and prevent cotton from rushing to foreign trade in a short period.

(two) weigh the advantages and disadvantages to subsidize railway pportation subsidies to highway.

The government led railway subsidy policy has undoubtedly weakened the competitiveness of road pportation and railway pportation.

Take Akesu to Nanjing as an example. If we subsidize highway pportation, railway pportation will only save 20 yuan more than road pportation. This is also easy to digest in the downstream market of textile enterprises, which greatly saves the production cost of enterprises.

This does not violate the original intention of the state to subsidize the pportation of Xinjiang cotton, but also enables more materials to be shipped out of Xinjiang, thus promoting the economic development of Xinjiang.

To maintain the sustainable development ability of cotton production, we must first break through the single pportation bottleneck. If we subsidize highway pportation, we can obviously reduce the cost gap between railway pportation and highway pportation, which is a great advantage for textile mills and cotton trade enterprises.

The enterprises that deliver cotton can choose the appropriate mode of pportation according to their own conditions and get rid of the bottleneck of single pportation.