Long Term Upside Down Of Cotton Prices Seriously Weakens The International Competitiveness Of China's Textile Industry.

Cotton prices have been seriously upside down for a long time, which jeopardize the interests of cotton growers, and they have hit the export of cotton textile products, weakened the competitiveness of China's textile industry and affected domestic employment.

In recent years, under the influence of insufficient international market demand and high yield expectations, the price of cotton in the international market has continued to decline, and the spread of domestic cotton has further widened, which has seriously weakened our country. Textile industry The international competitiveness has led to many small and medium-sized enterprises shutting down and shutting down production. Insiders say that the long and serious hang up of cotton prices at home and abroad will eventually jeopardize the interests of cotton farmers. "It is recommended to adjust our cotton purchase and storage policy and make direct subsidies to cotton farmers to protect cotton planting enthusiasm."

On the current cotton market situation, Zhou Shengtao, President of the China Cotton Association, in the interview with this reporter, summed up in two words: entanglement. Mainly in the following four aspects: first, the state sells cotton reserves at 18500 yuan per ton, and at the same time stores new cotton at 20400 yuan per ton; two, 3 million 130 thousand tons in 2011, but imports 5 million 440 thousand tons of cotton and about 1000000 tons of cotton yarn at the same time; three is that the textile enterprises limit production and stop production and increase profits, while the cotton farmers think that the comparative benefits of cotton seed are not enough; four is the "visible hand" and "invisible hand". Market allocation resources Effective combination with national macroeconomic regulation and control.

"These entanglements are generated after stabilizing the cotton market price, protecting the interests of cotton farmers and adopting the policy of purchase and protection. If there is no policy of purchasing and storage, cotton prices may fall to a very low level, and the interests of cotton farmers will not be guaranteed. Next year, the cotton planting area will continue to decline. He sighed with emotion.

However, Zhou Shengtao also believes that "this is a problem in progress". "Although the textile industry has been affected by some factors, it has not been damaged and the difficulties encountered are not unique to the textile industry. Under the current severe economic situation at home and abroad, the textile and garment industry can not be independent. Therefore, both enterprises and government departments should establish confidence, have strategic thinking, overall concept, and seek development in difficulties.

　　 Domestic and foreign cotton prices continue to widen

"International cotton prices fluctuate according to market demand and supply, while domestic cotton prices are supported by temporary storage and import quotas." In an interview with this reporter, Wang Tiankai, President of the China Textile Industry Federation, said that the domestic and foreign cotton price mechanism is the main reason for the current cotton price difference at home and abroad.

China began implementing the temporary cotton purchase and storage policy in 2011, and seized about 3100000 tons of cotton at the price of 19 thousand and 800 yuan per ton, accounting for 43.5% of the actual cotton output of 7 million 200 thousand tons in that year. Therefore, China's cotton price fluctuates around the 19 thousand and 800 yuan temporary purchase and storage price.

Since September 2011, the price of cotton in the international market has continued to show a downward trend due to the lack of international market demand and the expected high yield. According to the statistics of the China Federation of textile industry, the average cotton price at home and abroad was 2410 yuan per ton in 912 months in 2011. By the 13 month of this year, the average cotton price difference at home and abroad rose to 3638 yuan per ton; in 48, it increased to 5040 yuan per ton.

"The most direct consequence of the growing cotton price gap at home and abroad is China's textile industry. International Competitiveness Drop. " Wang Tiankai said that cotton prices at home and abroad are within 2000 yuan per ton, and China's textile industry can be hedged through technological progress and variety development. However, when the price of cotton spreads to 4000 yuan or even more per ton, any technological progress and talent reserve in China's textile industry seems to be powerless.

The export of cotton products has been hit hard by the spread of domestic and foreign cotton prices. According to the General Administration of customs, the total export volume of cotton textiles in China in 2012 14 was 7 billion 800 million US dollars, down 9.3% from the same period last year. The export volume of cotton yarn, cotton bedding and cotton garments decreased by 18%, 15% and 10% compared to the same period last year. This is followed by a serious decline in economic efficiency of cotton spinning enterprises. According to the China Cotton Textile Industry Association's follow up investigation, cotton spinning production capacity accounted for a hundred key enterprises in the whole country 1/4, total profit in the 14 months of this year decreased by 60%, of which 9 industry leading enterprises' total profit dropped 57.6% compared with the same period last year.