The Government's Excessive Protection Of Cotton Will Damage The Interests Of Many Parties.

Even in Spin Under the cost of $4000 per ton of cotton per ton, even if the government tries to protect it, the income of Chinese cotton farmers is not high. This kind of protection seems to protect the cotton industry, but it makes the textile enterprises and Chinese consumers suffer losses.

Judging from the cotton market, the price of cotton in China is far higher than that in the world market. This year, China's cotton prices are still showing a downward trend. In 2012, the cotton temporary purchase and storage plan was three grade lint storage and storage price of 20 thousand and 400 yuan / ton, which was higher than the market price. On the other hand, the amount of cotton flowing into the market has decreased. Cotton storage and storage in 2011 accounted for 49% of the total cotton output in that year. In order to allow the spinning enterprises to have cotton available, the State Cotton store has sold cotton at an average price of 18 thousand and 600 yuan / ton since September, but the deal is still not positive.

Textile enterprises to buy cotton is not positive, mainly because the domestic cotton prices are too high, the current cotton import price of 15 thousand yuan / ton below. With regard to transportation costs, the cost of cotton production between Chinese textile enterprises and overseas counterparts is 4000 yuan / ton. This part of the cost must be digested by the enterprise itself. Huafu color spinning (002042, stock bar) and other enterprises said that because of the difference in cotton prices at home and abroad, the terminal price reduction and other reasons, this year's performance is expected to drop by nearly 85%. In addition, downstream clothing Enterprises are also affected. It is precisely because China has a large number of skilled and cheap labor force and low energy prices that Chinese textile enterprises have digested the unfavorable factors and maintained their competitive advantages. However, in the long run, this space is getting smaller and smaller, and the purchasing and new textile production capacity of overseas brands are beginning to shift overseas.

The high cost of cotton production, on the one hand, is due to the high cost of labor. On the other hand, because of the rapid rise in the prices of means of production, China's cotton is not competitive in the international market. According to the average seed yield of 300 kg seed cotton, the cost of picking flowers per mu is 750 yuan, and then the cost of agricultural materials and so on. The total cost of one mu of cotton is about 1700 yuan, and the profit per mu is about 600 yuan. If there is no storage, farmers may lose money.

In the long run, the rise in labour prices will make small scale agriculture less attractive. The price of cotton picking in Xinjiang has risen from 0.5 yuan per kilogram in 2000 to 2.5 yuan per kilogram, and the share of labor cost in picking flowers only increased from 16% to 32% in cotton prices. If there is no scale advantage, cotton growers will make little profit. Under such circumstances, government subsidies will slow down the land concentration process and slow down the transfer of labor force from the land. And the transfer process is irreversible. Take Japan as an example. In 2010, there were 2 million 600 thousand agricultural workers in Japan, a decrease of 750 thousand from 2005, with a decrease of 22.4%, with an average age of 65.8 years. Agricultural returns are not enough to attract so much labour. The more developed countries, the less labor force in traditional agriculture, but the reasons are different. Some are due to the rising labor efficiency and the need for too much labor. Some are because the cost of land and planting is too high, and agriculture no longer has an advantage. There are more opportunities and rewards in other industries.

In order to protect local interests or the so-called security strategy, the entire population may be kidnapped, such as South Korea, because of restrictions on foreign agricultural products, and the limited domestic production, resulting in the purchase of high priced vegetables, fruits, grains and meat products. This is the same as Chinese textile enterprises. They could have used more preferential cotton to compete with foreign counterparts. In South Korea, farmers continue to boycott parade news for their own interests, and to some extent, affect the election.

China has deeply integrated into the world economy and has become a veritable world factory, but the agricultural sector is still isolated from the outside world. Although agriculture accounts for a smaller proportion of GDP, the government still puts agriculture in a very important position. It is easy to understand that Chinese people have collective memory of hunger, and the agricultural population is still large. But with the current grain production capacity, as long as the market remains free, famine will not come again. Excessive protection of agricultural products will not only benefit the development of China's industry, but also harm China. consumption The interests of the people. The rapid rise of planting industry in South America is the result of opening up to the outside world. After actively participating in the global division of labor, China has shown strong competitive strength in the field of industrial production. It is believed that agriculture will also have strong vitality under the background of land circulation concentration.