Huge Cost Difference, My Textile Industry Loses Competitiveness.

In the "national cotton work teleconference", Zhang Xiaoqiang, deputy director of the national development and Reform Commission, analyzed that because of the 4% decrease in cotton planting area this year, cotton production is expected to decline.

Zhang Xiaoqiang: the actual output of cotton in China is estimated to be about 6 million 900 thousand tons, a decrease of 300 thousand tons over the previous year and a decrease of 4.2%.

Although cotton production is reduced, it will not affect the market supply, because downstream

The demand for cotton and clothing industry is also not strong.

Zhu Hong, chief engineer of the Ministry of industry and Commerce: 1-8 months above designated enterprises

Retail sales of cap and needle textiles decreased by 6.5% compared with the same period last year.

The weak textile and garment industry is partly due to the decline in imports of textiles and clothing due to the economic crisis in Europe, the United States and Japan. On the other hand, China's cotton prices are much higher than international prices, pushing up the cost and price of textiles and clothing, resulting in a decline in competitiveness.

The global financial crisis has intensified, and cotton production has increased in the world. The result is a serious imbalance between supply and demand.

Commodity prices, including cotton, have seen the largest and largest decline in the world, and the US cotton prices have fallen by nearly half of the same period last year.

However, domestic cotton prices and international cotton prices have rapidly opened up a gap.

Last September to March this year, China started the temporary storage and storage, and at the price of 19800 yuan / ton, it collected 3 million 125 thousand tons of lint and accounted for half of the domestic output. During that time, the domestic standard cotton price has been stable at 19300-19600 yuan / ton.

The purchase and storage of cotton in 2012 has been launched in September 12th, and the National Reserve has been opened up and sold in accordance with the price of 20400 yuan / ton.

In comparison, the price of American cotton is 14416 yuan / ton, Australian cotton is 15148 yuan / ton, Uzbekistan cotton is 15280 yuan / ton, India cotton is 13810 yuan / ton.

The company wants to import cotton and is restricted by the import quota of cotton. The newly released cotton import quota in 2013 is 894 thousand tons, less than 10% of domestic cotton demand.

On the other side, hungry, and looking at cheap big fat meat, but could not eat, textile and clothing enterprises hundred claw heart uncomfortable.

Beijing copper bull clothing general manager Ma Hui: since the financial crisis, because international market demand is relatively weak, international cotton prices are changing as demand changes, but China has

The mechanism has internal pricing mechanism, so at this stage, it is indeed 5000 yuan / ton more than the international cotton price.

Affected by the spread of cotton prices at home and abroad, the export volume of cotton yarn was the largest in China from 1 to May this year, and the volume of exports decreased by 22.5% compared with the same period last year.

Ma Hui said that the huge cost difference made the domestic textile industry and garment industry lose the competitive power even in the background of the export market downturn. In turn, it reduced the demand of cotton and entered a vicious circle.

Ma Hui: now that cotton is not released, the price of cotton is still rising. It certainly has room for improvement in cotton prices, which means greater pressure and less competitiveness.

Over the past two years, many of the ready-made clothes have been pferred to Southeast Asia and exported to other countries because of the high cost in mainland China.

The price of raw materials such as cotton has increased and labor costs have increased. Some foreign brands have placed their orders in Southeast Asia. Some textile and garment enterprises in China are also turning to Southeast Asia, where they can buy cotton that is in line with international prices and recruit cheaper labor.

The expansion of domestic and foreign cotton prices has not only squeezed the profit margins of downstream enterprises, but also made the opportunity to replace cotton with chemical fiber, and the amount of cotton has been further reduced.

What are the feedback from cotton farmers who are complaining about the textile industry?

Reporter: how much is it now? Is anyone buying?

Cotton farmers: Yes, 4 yuan a Jin, 8 yuan a kilogram.

Interviewer: 8 yuan a kilogram, right?

Cotton farmers: Yes.

Jiangsu Sheyang county has always been the main cotton producing area in the East, but the cotton grower who had planted cotton for nearly 30 years told reporters that cotton was used for every household in the past. Now there are two species of cotton in ten families.

She planted 8 mu of cotton last year, which has shrunk to 4 acres this year. Although the price of cotton is 4 cents higher than that of last year, she still doesn't want to sell, and she wants to wait for a good price.

Because cotton management is difficult, time-consuming and artificial, the current price is not as good as rice.

When the reporter told her that the eight ministries and commissions of the Central Committee predicted that the demand for cotton would not be strong this year, they could sell and sell. Then she suddenly realized that this year the number of hawkers who came to buy cotton was not as good as that of last year.

Cotton farmers are unwilling to sell, and cotton enterprises are unwilling to accept the phenomenon.

In Dezhou, one of the key cotton producing areas in the country, the purchase amount of cotton enterprises is only 1/5 of the same period in the past year.

Meanwhile, Zhang Xiaoqiang, deputy director of the national development and Reform Commission, issued an early warning.

Zhang Xiaoqiang: by the end of August, the state reserve cotton inventory has reached the highest level in history. It may be difficult for farmers to sell cotton, and the funds for acquiring cotton are also tight. The cotton enterprises' own funds, textile enterprises' prepayment and social funds may be reduced this year, and the demand for agricultural development funds will be more concentrated.

What is the need for such a difficult market acquisition and cotton import quota? Li Guoxiang, a researcher at the Institute of rural development of the Chinese Academy of Social Sciences, said that cotton is a basic agricultural product, and that domestic protection in basic agricultural products is an international trade practice.

Li Guoxiang: if there is no such industry in China, you will rely too much on others or rely entirely on others. If people want to fire you, you will be more passive.

2010 China

The reduction of output and speculation by international speculators increased cotton to more than 30 thousand. Under normal circumstances, cotton fell to less than 20 thousand yuan last year.

It is essential for basic agricultural products to buy market, but how to buy the market to avoid or reduce the downstream industries may also be considered by relevant departments.