The Limitation Of Storage And Purchase Policy, The Regulation Of Big Cotton Will Usher In The Turning Point.

Since 2011 Cotton collection and storage Since then, the difference between domestic and foreign cotton prices has been increasing. The two international and domestic markets are in double track operation. According to the price of standard grade lint price, the difference between inside and outside cotton price was once close to 5000 yuan / ton, which is still around 3400 yuan / ton. The high price of domestic and foreign cotton has kept the competitiveness of Chinese textile enterprises participating in Global trade. Under the background of structural adjustment and industrial upgrading, the blow to Chinese textile enterprises is undoubtedly exacerbating.

The purpose of China's acquisition and storage of cotton is mainly to protect the interests of cotton farmers while ensuring market supply. But when the policy of purchasing and storing up to the third year, it was difficult and besieged everywhere. Reform is inevitable, and the formation of a more vigorous and balanced cotton control mechanism in the industrial chain has become the consensus of the industry. Cotton direct subsidy rod cotton storage and storage, is forced by the situation, the general trend.

Counter cyclical regulation and control of cotton purchase and storage should be a temporary policy rather than a permanent solution.

The collapse of Lehman caused the global financial tsunami in 2008. Cotton price All the way down, the Chinese government, in order to protect the interests of cotton farmers, has repeatedly carried out cotton collection and storage of counter cyclical markets, that is, reducing short-term supply of cotton and promoting a new balance between production and demand, thereby slowing down cotton prices. At the same time, in order to cope with the economic crisis, the global rescue plan made the cotton textile industry come back to life, plus cotton production for two consecutive years, and finally led to the cotton market in 2010/2011. During this period, the Chinese government absorbed the high price and adjusted cotton prices freely. The storage and purchase of cotton in 2011 compared with 2008, though all related to the sudden deterioration of the foreign trade environment, is still quite different. The collapse of cotton prices in 2011 contains factors that the government actively controls. This determines that it is difficult for the textile industry to get support from the government's stimulus policies. The long term textile industry is sluggish and no law is pushing up cotton prices. In order to protect the interests of cotton farmers, the Chinese government can only be "kidnapped" for continuous storage and purchase, which is only a temporary rescue plan. Now it has become a long-term solution for regulating the industry, and the consequences are self-evident.

In the mire of "collecting more and throwing less", it is difficult to continue.

Cotton purchase and storage as a short-term strategy is to adjust the market supply to facilitate the balance of production and demand in the cotton textile industry, and ultimately achieve the close cooperation between the "visible hand" of the government and the invisible hand of the market. Once the cotton purchase and storage is the only way to save the market, it will break the market's original ecological trade environment. According to statistics, 2011/2012 and 2012/2013 collected two tons of cotton in China, and the total amount of cotton collected by the Chinese government was about 10 million 630 thousand tons. As of July 31, 2013, the three cotton throwing and storage of 2012/2013 cotton launched in the year amounted to about 4 million 250 thousand tons, accounting for only 40% of the total reserves. At present, China's textile industry is undergoing structural adjustment and the transformation pains brought by industrial upgrading, while the lack of external demand and the sluggish domestic demand also make the recovery path of textile enterprises frustrate. In this environment, the cotton purchase and storage will undoubtedly fall into the mire of "collecting more and throwing less".

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The purchase and storage of cotton has split the two markets at home and abroad, which has increased the burden of textile enterprises.

China's cotton purchasing and storage policy has been implemented. The annual cotton price of 2011/2012 cotton is 19800 yuan / ton, and the annual cotton price of 2012/2013 cotton has been raised to 20400 yuan / ton. According to the statistics of internal and external cotton price index, the cotton price difference between domestic and foreign countries has been increasing since the purchase and storage of cotton in 2011. The two international and domestic markets are in double track operation. According to the price of standard grade lint price, the difference between inside and outside cotton price was once close to 5000 yuan / ton, which is still around 3400 yuan / ton. The high price of domestic and foreign cotton has kept the competitiveness of Chinese textile enterprises participating in Global trade. Under the background of structural adjustment and industrial upgrading, the blow to Chinese textile enterprises is undoubtedly exacerbating.

Facts have proved that the policy of cotton purchase and storage has its limitations and is not suitable for any period. Since the global financial crisis in 2008, the road of recovery has been uneven, Global trade has shrunk, and China is also at the critical stage of structural change. The internal and external textile industry has been squeezed and the road of recovery has been endless. Cotton direct subsidy to replace cotton collection and storage is an inevitable choice to restore the industry's original ecological trade environment and market economy, and is also the only way to achieve fair trade competition. Reform has become a consensus. Cotton regulation The turning point is coming.