Cotton High And Low Cotton Throwing Enterprises At A Loss

The acquisition of new cotton has started in 2012, but this year's cotton The production and sale situation is different from previous years.

The acquisition of new cotton has started in 2012, but this year's cotton production and sales situation is different from previous years. In September, when the state bought and sold cotton at a high price, it sold at a low price, and there were two kinds of prices for cotton, namely, the storage price and the market price.

At present, cotton farmers are too reluctant to sell cotton prices. Cotton companies are reluctant to accept high cost of takeovers. Foreign cotton prices are much lower than domestic prices. Spin The cost of enterprises is high and exports are declining. What's wrong with the cotton industry?

Entangled in a high price to buy, store, sell and store at a low price

In order to stabilize domestic cotton prices and protect the interests of cotton farmers, in September 2011, the state launched a cotton purchase and storage policy, and the three grade lint was bought at 19800 yuan per ton. By the end of March 2012, a total of 3 million 130 thousand tons were collected, accounting for 43% of the total cotton output in that year.

In February 29, 2012, the 8 Department of the state announced the plan for the temporary storage and purchase of cotton in 2012, and the price of three grade lint storage and storage was 20400 yuan / ton, an increase of 600 yuan / ton compared with the previous year. The execution time is from September 1, 2012 to March 31, 2013. When the market price of cotton is lower than the reserve price for 5 consecutive working days, the plan will be launched.

After the end of March this year, the cotton prices continued to slow down in the market. By the beginning of September, the three grade lint fell to 18500 yuan / ton. In September 10th, the state launched a temporary storage and purchase plan, which was purchased by 20400 yuan / ton of grade three lint and 382 thousand tons at the end of September.

At the same time, in order to meet the needs of textile cotton, from September 3rd to September 29th, the state threw some of the reserve cotton in 2011, and the bid price was three yuan lint 18500 yuan / ton.

Entangled two cotton two kinds of prices, cotton enterprises at a loss

Since the beginning of September this year, some cotton processing and purchasing enterprises in Wucheng and Xiajin counties of Dezhou, Shandong have opened the door to acquire new cotton, and the purchase volume is about 1/5 of the same period in the past few years. Four seed cotton purchase price of 8.20 yuan / kg, the lint 36%~37%. The current purchase price of seed cotton is basically the same as that of the same period last year, but higher than the average price last year (7.60 yuan / kg).

Affected by continuous rainfall, the quality of cotton in Dezhou this year is much lower than that in normal years. According to statistics, as of October 7th, 56 cotton enterprises in Dezhou processed 9976 tons of lint, only 64% of the total purchases last year, of which three grade cotton accounted for only about 15% (40% of the three cotton in normal year), four grade cotton accounted for 77%, five cotton accounted for about 7%.

The acquisition cost of grade four seed cotton is about 19100 yuan / ton, plus processing cost, the total cost is close to 20000 yuan / ton, which is higher than the four grade cotton purchase and storage price in the country (19800 yuan / ton). Because of the high cost of acquisition, cotton enterprises are at the edge of losses, and some enterprises stop and wait.

Cotton industry exists store up Price and market price are two kinds of prices. Cotton enterprises are puzzled: what kind of price do we accept? If we refer to the five lint price on the market, then the seed cotton purchase price is only about 7 yuan / kg, far below the average purchase price of 8.20 yuan / kg, and the interests of cotton growers will not be guaranteed.

Entanglement between three cotton mills at home and abroad

Since September 2011, affected by the global economic weakness and the increase in cotton production, foreign cotton prices have continued to decline. Domestic cotton prices have been supported by the reserve price, basically stable, and the difference between domestic and foreign cotton prices has been increasing. The maximum price difference has reached 5000 yuan / ton. At the end of September, the price index of China's imported cotton was 84.6 cents / pound, and the tariff rate was 1% yuan, 13713 yuan / ton, lower than the similar level of 4960 yuan in China, and the price of the discount tax was 14623 yuan / ton, lower than the domestic 4050 yuan.

The huge difference between inside and outside cotton increased the import volume of cotton greatly. In the 2011 cotton year, China imported 5 million 440 thousand tons of cotton, an increase of 110% over the previous year. Some enterprises imported cotton yarn directly. In 2011, China imported 1 million 310 thousand tons of cotton yarn, an increase of 43% over the previous year.

Dezhou has more than 240 cotton textile enterprises, 4 million 500 thousand spindles, and over 80% of small and medium-sized textile enterprises. It is understood that since March 2011 cotton yarn prices continued to decline, the recent 32 mainstream cotton yarn quoted price in the 25500 yuan / ton, compared to last March's 39500 yuan / ton fell 14000 yuan / ton, or 35%. At present, the production of pure cotton yarn in small and medium-sized textile enterprises in Dezhou is generally in a state of loss; the production of new fiber (bamboo fiber, modal, soybean protein and other fibers) orders for enterprises have been reduced, though profits have been made, the profit margins have dropped sharply.

Although the whole textile industry is in a difficult position, most textile companies dare not stop production, stop working and lose their employees, but it is difficult to recruit workers again, but the rate of starting up is generally not high. At present, the overall boot rate in Dezhou is 60%~70%. (Ma Junkai, Secretary General of Cotton Association of Dezhou, Shandong)

　 proposal

At present, how to solve the problems in the cotton industry?

First, store five grade lint in the affected area. In view of the serious situation of serious waterlogging in Shandong, Hebei and Tianjin and the decline in cotton quality this year, the state stores and stores five grade cotton in the above areas to protect the interests of local cotton farmers.

Second, formulate supportive policies and introduce Cotton Subsidy. It is suggested that, on the basis of stable purchasing and storage policy, the state will introduce comprehensive subsidies for cotton seed subsidies and cotton seed farming, introduce preferential policies to support the development of cotton specialized cooperatives, and arrange special funds annually to establish high-quality cotton base counties in the main cotton producing areas.

Thirdly, establish the mechanism of import and export of cotton. It can be abroad. Cotton price At the lower level, we should collect and store part of the outer cotton, increase the reserves of our cotton resources, reduce the cost of collecting and storing, and effectively solve the problem of quota speculation.