Only Emphasizing The Difference Between Inside And Outside Cotton Prices Conceals Many Contradictions In The Textile Industry.

Save cotton or save?

At present, the textile industry is facing the dilemma of the upper and lower reaches of the industrial chain: the low efficiency of cotton planting, the serious contention between economic crops and cotton, and the policy of cotton storage and storage should be normalized to prevent cotton from taking the road of soybean.

However, under the normal high price cotton, the domestic cotton circulation industry is facing the risk of extinction, and the textile industry will decline sharply in the process of gradual loss of cost advantage.

In view of the current textile industry appealed to the decision-making departments as soon as possible to introduce corresponding policies, straighten out the relations between the parties and help the industry out of the predicament under the premise of guaranteeing the cotton farmers' income, the relevant people of the national development and Reform Commission pointed out that some policies can alleviate difficulties in a short time, which may cause more serious problems for a long time, which will cause disastrous damage to the industry.

The textile industry should make use of this opportunity to achieve real pformation and upgrading of industries through structural adjustment.

Profits fell sharply in the textile industry and losses increased by 110% over the same period last year.

"This year's textile situation is more severe than the 2008 financial crisis. In 2008, the international market is weak, and the domestic market is not bad. This year, two markets at home and abroad are not ideal."

At the 2012 national cotton situation analysis conference held recently, Zhang Yan, deputy director of Wuxi No.1 Cotton Textile Mill said.

The economic performance of the textile industry in 1~8, released by the national development and Reform Commission, shows that this year, affected by the weak economic recovery in the United States, the spread of the European debt crisis and the slow growth of emerging markets, and the slowdown in domestic economic growth, it has had an impact on the growth of China's textile industry.

In 1~8, the growth rate of production, investment, export, domestic sales, and efficiency decreased as a whole.

In terms of production, according to the statistics of National Bureau of statistics, the total industrial output value of 37 thousand Textile Enterprises above Designated Size reached 3 trillion and 639 billion 430 million yuan in 1~8, an increase of 10.8% over the same period last year, and the growth rate dropped by 18.6 percentage points over the same period last year, down 3.9 and 0.5 percentage points respectively compared with the one or two quarter of this year.

In terms of investment, in 1~8 months, the textile industry totaled more than 5 million yuan and the total investment in fixed assets was 483 billion 590 million yuan, up 16.2% from the same period last year. The growth rate dropped by 19.6 percentage points over the same period last year.

On the export side, the latest statistics of the General Administration of Customs show that textiles in China in 1~8

The total export volume was 162 billion US dollars, down 0.7% compared with the same period last year, and the growth rate dropped 2.3 percentage points compared with that in 1~6 months.

Domestic sales, 1~8 months, the above quota clothing

Retail sales of cap and needle textiles increased by 17.5% over the same period last year, up 2.9 and 0.6 percentage points respectively over the one or two quarter of this year, but the growth rate is still 6.5 percentage points lower than that of the same period last year. After deducting price factors, the actual retail sales growth rate is 13.6%, down from 8.7 percentage points in the same period last year.

In terms of efficiency, in 1~7 months, the total profit of textile enterprises above designated size was 135 billion 800 million yuan, down 1.1% from the same period last year, the growth rate was 48 percentage points lower than that of the same period last year. The loss of enterprises was 17.7%, and the deficit of loss making enterprises increased by 110% over the same period last year.

Xia Lingmin, vice president of China Textile Industry Federation, believes that the export of Chinese textile industry is facing the most difficult situation in the past 3 years.

"The export of textile and garment industry in the 1~7 months of this year is almost zero growth compared with the same period last year. It is rare in recent years. In August, there was a negative growth. Compared with the previous period, only in 2009, the impact of the financial crisis dropped by 9.5% compared with that in 2008. In 2010 and 2011, it also maintained an increase of 10 to 20 percentage points."

He said.

Xia Ling min analysis thinks that in recent years, China's textile industry is facing severe internal and external challenges. The weakening of the world economy and the European debt crisis have affected international demand; on the other hand, the downward pressure on domestic economy has increased, and the growth of domestic demand market has begun to slow down, coupled with the obvious fluctuations in prices of textile raw materials, both at home and abroad.

The upside down problem highlights that the cost of labor, energy and other factors continues to rise, the efficiency of enterprises is declining, the number of loss making enterprises is increasing, and many entrepreneurs lack confidence and are confused about the future.