Development And Reform Commission To Stabilize Cotton Prices And Halt Cotton Import Quotas

Recently, a "NDRC halted"

The news of import quotas has become a hot topic in many financial websites.

This news, which seems to have little relationship with the common people, actually refers directly to the first dressing of people's clothing, food and shelter.

As the largest cotton producing, consuming and importing country in the world, China has always had a high degree of dependence on the international cotton market. The annual total 30%-40% demand for cotton depends on imports.

However, domestic and foreign cotton prices have been upside down for a long time. Compared with imported cotton, domestic cotton prices are about 4000 yuan higher than that of imported cotton.

Only 8 years of cotton import quota system has been halted, and what impact will it have on garment enterprises?

Cotton prices upside down quotas soared

For Chen Xiao, who runs a textile mill in Wuhan, the mood to get cotton import quotas this year is even more urgent than ever.

"This year the market is very bad, the cloth can only be sold at a low price, and the domestic cotton price is high."

For this reason, Chen Xiao always inquired about where to buy imported cotton quotas.

In August, Chen Xiao learned that the price of this year's quota has risen to more than 3000 yuan.

"In the first two years, it will be more than 1000 yuan."

But this year, the price of foreign cotton is 4000 yuan cheaper than that of the domestic one. Even if we sell it to more than 3000 yuan, it will be cost-effective.

But Chen Xiao failed to get the quota of imports, which was "very tight and expensive."

A few days ago, a message from the national development and Reform Commission made Chen Xiao give up completely.

"Although it is temporarily stopped, it is much harder to buy this year. There is still no import quota next year."

In order to limit the impact of foreign cotton imports on the national cotton market, China has stipulated that cotton imports need quotas since 2004. Cotton spinning enterprises must apply for quotas if they want to get imported cotton.

For small businesses that are not easy to get quotas, if they want to get cotton import quotas, they will pay an additional 3000~4000 yuan per ton of quotas.

Because of this, quotas have been reduced to rent-seeking tools.

China has issued nearly 3 million tons of cotton import quota this year, including the quota of 1% tons of 894 thousand tons and the quota of 200 million tons.

In the first two years, the total amount of cotton import quotas issued by our country was about 3 million 600 thousand tons.

Reduce impact and protect cotton prices

The import quota policy that has been going on for many years has been halted this year. The aim is to reduce the impact of foreign cotton on domestic cotton prices, protect domestic cotton prices and protect the interests of cotton farmers.

"In the first two years, the total demand for cotton in China is about 10 million tons, and imports 3 million 500 thousand tons, and domestic cotton consumption is between 650-700 tons."

Xu Yu introduced, and this year, imports of cotton only reduced 600 thousand tons, and affected by the economic background, the domestic total demand reduced to 8 million tons, which led to a large backlog of domestic cotton.

"This year, the impact of foreign cotton on domestic cotton is particularly obvious. In some coastal textile enterprises, we found that half of the cotton stored in the warehouse is Australian cotton or American cotton, and in the past years, only about 20%-30% of cotton stocks were stored."

Insiders told reporters that since March 2011, domestic cotton prices have been on the decline, but less than the international cotton prices, so the difference between domestic and foreign cotton prices gradually widened, this year broke 5000 yuan, reaching a record high.

"This is mainly because the United States, Brazil and other countries, cotton production using farm management, high degree of mechanization, production costs are much smaller than domestic."

The issue of import quotas will not be studied this year, which will have limited impact on the midstream enterprises and will not be pmitted to downstream enterprises.

Reporters saw that on the day of the information released by the NDRC, the 1301 contract of the cotton futures contract of Zhengzhou merchants opened at the end of 19550 yuan / ton, closing at 19810 yuan / ton, up 230 yuan from the previous trading day, which was closed at the end of September 18th.

Textile enterprises are losing their jobs.

Wuhan Nansong Cotton Weaving Co., Ltd. is a cotton textile enterprise in Yangluo economic development zone. Tao Aishe, director of the sales department, told reporters that the company imported cotton yarn from Shandong and Henan to produce cotton cloth exports.

In previous years, the company's capacity was 700-800 tons, but from last November, he gradually reduced production, and by April this year, capacity has been reduced to half.

"Only 50% starts to maintain big clients. The more we open, the more we lose."

Tao Aishe told reporters that international

The foreign enterprises that continue to fall and place orders are priced at the international cotton price, but the cotton cloth produced by themselves is produced with higher cost domestic cotton.

"The price of cotton yarn has dropped by 2 over the same period last year, but the sales price of cloth has dropped by 2-3."

Tao Aishe said that the purchase of 1 tons of cotton yarn required 23000 yuan, while 1 tons of cotton yarn produced cloth can sell to 34000 yuan, "the difference is 11000 yuan, the labor cost, rent, tax and so on, can not earn money."

Tao Aishe said that under normal circumstances, the difference between the 17000-18000 yuan, enterprises can make money.

Zhang Xianbin, the head of the national development and Reform Commission's economic and trade division, said that the impact of the poor cotton price on the textile industry is not the most important factor causing its difficulties.

The difference between inside and outside cotton prices conceals many contradictions in the industry, and the textile production capacity is constantly expanding rapidly, once the market changes will be difficult to cope with.

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Influence

"Little impact on high-end brand clothing."

Li Qunbao runs a small women's clothing factory in Wuhan. When it comes to stopping the quota of imported cotton, Li Qunbao is very calm. "To be honest, cotton prices are rising now, not as high as the cost pressure of rising oil prices."

Li Qunbao told reporters that the amount of cotton used in his women's clothing was not very large. The raw materials were mainly made of chemical fiber fabrics. "In the three seasons of spring, summer and autumn, chemical fibers were mainly used, and cotton would be used more in winter when making cotton padded jacket."

In fact, many consumers have found that now in the composition of clothing, polyester fiber, nylon, spandex and other chemical fiber components are becoming more and more common, in fact, this is also one of the ways to reduce costs.

For the price at the end of August, polyester fiber is about 10 thousand yuan / ton, domestic cotton price is 19000 yuan / ton, nearly double the price difference, let enterprises minimize the content of cotton in clothing, in order to reduce the pressure of cost rise.

Viewpoint

"Interference in the agricultural products market is the international" hidden rules ".

Agriculture is a special industry. In any country, there are special protective policies for low-end, fragile and indispensable agricultural products.

Dong Dengxin, director of the financial and Securities Research Institute of Wuhan University of Science and Technology, said in an interview with reporters that many developed countries would intervene in the market of agricultural products forcefully, which is a "hidden rule" in the world.

"Agriculture is related to food safety, is a basic consumer raw materials, so the NDRC suspended import cotton quotas, which is no problem."

For the current difficulties of textile enterprises, Dong Dengxin believes that the root cause is not the price difference between domestic and foreign cotton.

"Our country has been providing a large number of low value-added cotton textile products and clothing exports. I don't think it is necessary to exchange cheap products for foreign exchange.

To solve the plight of textile enterprises, the root is to upgrade the industrial structure and trade structure.

Dong Dengxin believes that if enterprises are now allowed to export less expensive cotton spinning products and clothing, they will surely lead to a large number of unemployment and business failures. "Therefore, to adjust the macro level, the current problems can be straightened out."

During the interview, Dong Dengxin pointed out that the current Chinese economy has become the most difficult time in the past thirty years of reform and opening up, and economic restructuring and structural adjustment are very difficult.

"Suspension of cotton imports

The real problem is not external cause, but internal cause. "