There Is A Big Gap Between Domestic And Foreign Cotton Prices.

Recently, cotton in Shaanxi Province

(machinery and equipment) Industry Association, in accordance with the grim situation facing the textile industry, held a president's office meeting in Shaanxi eight party Textile Co., Ltd., earnestly analyzed the situation research countermeasures, and enhanced the confidence and determination of enterprises to overcome difficulties and tide over difficulties.

Tian Fuhai, vice president of Shaanxi Textile Industry Association, President of Shaanxi Cotton Textile Machinery Association, Shaanxi vice president of Shaanxi Textile Industry Association, and Secretary General of Shaanxi Cotton Textile Machinery Association, attended the meeting.

In the first half of this year, the cotton textile industry in Shaanxi was affected by the international and domestic environment. Exports were blocked and domestic sales were not strong. The cost of production increased significantly.

According to the internal exchange data of Shaanxi textile system, only 2 of the 7 large cotton spinning enterprises that were originally under the province were 7 million 281 thousand and 700 yuan in profit this year, and 5 of them were in a state of deficit in 1~6 months, with a total loss of 82 million 12 thousand and 400 yuan.

Problem

The problems encountered in the textile industry are as follows: first, the export is seriously hindered.

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The northwest part of the enterprise is an example: the export volume in the first half of this year is only 3 million 550 thousand meters, a decrease of 64% compared with the export volume of 9 million 870 thousand meters in the same period last year, and the foreign exchange earning 3 million 572 thousand and 300 US dollars, a decrease of 70.28% compared with the same period last year, that is, the export volume has been reduced by more than 2/3.

Two, domestic and foreign cotton prices are seriously upside down.

Domestic and foreign cotton spreads continue to expand, compared with India, Pakistan, Vietnam and other emerging market countries, the larger cost of cotton consumption seriously weakened the competitiveness of cotton textile enterprises in the international market.

Three, the problem of capital is still outstanding.

Due to the serious shortage of funds, enterprises have been affected by equipment upgrading and industrial upgrading, which seriously restricts the development of enterprises.

The four is the rising cost of labor and power.

Last year, the state-owned textile enterprises in Shaanxi sharply raised the wages of workers and increased their capital by more than 30%. Only the annual increase in the amount of the northwest alone cotton and Shaanxi eight party Textile Co. reached 23 million 200 thousand yuan and 20 million 160 thousand yuan respectively.

Five, cotton textile value-added tax "high levy and low deduction" increased the burden on enterprises.

For a long time, cotton textile enterprises have a deduction rate of 13% for cotton purchase.

The value-added tax rate of cotton textile products is 17%, and the difference between 4% is borne by the cost of the enterprise.

Last year, northwest cotton was heavily charged with 5 million 447 thousand and 900 yuan because of the "high levy and low deduction" policy.

Suggestion

In the face of the continuing difficulties in the second half of the year, the participants called on the relevant state departments to rectify the cotton in time.

Stabilize domestic cotton prices as soon as possible.

We should try our best to reduce the price difference between domestic cotton and imported cotton, constantly improve the competitiveness of textile enterprises in the international market, and solve the problem of "high tax and low deduction" of cotton textile value-added tax as soon as possible.

In view of the difficulties in the production and operation of the enterprises this year, the gap between the income of workers and the average wage has continued to widen, and it is suggested that the value-added tax should be suspended for 3 years in the province in order to ensure that the income of workers and workers can be gradually close to the average level of the society.

The shortage of funds is the biggest problem restricting the development of textile enterprises. It is suggested that the government coordinate banks to ensure that the total amount of loans will not drop.

At the same time, it is proposed to implement the 5 year tax refund policy for state-owned textile enterprises as soon as possible, and continue to postpone the policy of exemption from urban land use tax due to expire in September this year, in order to cope with the difficult situation.