The Price Behind The "Policy City" Of Cotton Is Astonishing.

Although the policy of cotton throwing and storing is right. Spin The industrial chain formed effective protection, but it also interfered with the cotton market and made the cotton futures price and cotton spot prices seriously out of line. Because of the policy protection, the price of domestic cotton is also higher than that of outer cotton for a long time. Cotton price The gap is very large.

Cotton prices have entered a "relatively stable" period after experiencing a roller coaster boom and fall in the past two years of 2010~2011. It is understood that after 2012, domestic cotton entered the production cycle, but because of the majority of retail cultivation, high-quality cotton is not much, and because the technology price is much higher than foreign cotton prices. In order to protect the cotton industry and safeguard the interests of cotton farmers, the state began to support the market by purchasing and storing policies, while restricting the influx of cheap imported cotton, thus stabilizing domestic cotton prices. However, industry sources revealed that Purchasing and storage policy It is run by high price income and low price selling, and some industry losses are borne by the state. In addition, although the cotton picking and storing policy has effectively protected the textile industry chain, it also interferes with the cotton market, which seriously disconnects cotton futures prices from cotton spot prices. Due to the policy protection, the price of domestic cotton has also been higher than that of foreign cotton for a long time, resulting in a big gap between domestic and foreign cotton prices.

Disrupting the cotton market?

Because of the skyrocketing and tumbling of cotton market, the country is in order to stabilize. Cotton market In 2011, a temporary cotton purchase and storage policy was implemented in order to protect cotton farmers' interests. With the advent of this policy, domestic cotton prices quickly stabilized, but many subsequent problems continued. According to the insiders, the storage and storage in 2012/13 totaled 6 million 506 thousand tons, accounting for 85.4% of the cotton output in that year. The annual national funds for the collection and storage of cotton amounted to 100 billion yuan, almost monopolizing the domestic cotton supply market. According to the latest data released by the US Department of agriculture, it is estimated that China's cotton inventory will be 10 million 890 thousand tons in 2012/13, accounting for about 60% of the end of the world inventory.

Chen Jiumei, director of China market of PCI fiber consulting, said that it was estimated that in the past two cotton years, China Cotton inventory An increase of about 8 million tons is expected to continue to increase in 2013/14. At present, the stock of cotton is about 10 million tons, which is 1.25 times the amount of one year. For the huge storage of cotton, people in the industry began to worry about the whereabouts of the stock. Although the State adopts the policy of high and low turnover, the inventory is still far ahead of the market demand. If we want to ease the stock pressure in the future, a large number of sell-off will surely lead to a sharp adjustment in the global cotton market.

Judging from the trend of cotton inventory in recent years, this year, due to the support of unlimited purchasing and storage policy, the turnover inventory in the market is low, and the stock market has shifted to the reserve bank. This means that most of the cotton has been paid into the Treasury. If the country does not store it, many cotton spinning enterprises will hardly buy cotton from the market. Industry analysts said that the growth of reserve inventories is easy to disguise the real demand of the market, which easily leads to distortion of cotton prices, affecting supply and demand and determining the market rule of price.

The price behind the policy market is astonishing.

Another impact brought about by the policy of purchasing and storing is that the domestic and foreign cotton prices have maintained a large gap for a long time. According to the cotton interim policy, the domestic cotton purchase price is 20400 yuan / ton, the selling price is 19000 yuan / ton, although the state has adopted the strategy of high and low throw, but compared with the international cotton, the price difference still maintains at 4500 yuan / ton. Chinese cotton Textile industry Zhu Beina, President of the association, said cotton price difference had the greatest impact on cotton textile industry. "At present, domestic cotton price is above 19000 yuan / ton, and the price difference between imported cotton and imported cotton has been maintained at 4000 yuan ~5000 yuan / ton, and last year it was once 6000 yuan / ton, which directly led to domestic enterprises not competitive." Zhu Beina said.

Looking at the cotton market in recent two years, because of the weak market demand, the international cotton price plunged sharply. Last year, the domestic cotton price was even higher than the international cotton price per ton by 5000~6000 yuan. Although the price gap has narrowed, the domestic spinning and weaving enterprises still face much higher cost of raw materials than foreign counterparts, which seriously affects the competitiveness of enterprises.

According to the reporter's understanding, the policy of purchasing and storing and storing high and low prices is a part of the loss that the country assumes in the industry every year. "According to the price difference between 20400 and 19000, the price difference per ton is 1400 yuan, while the storage and storage in 2012/13 accumulated 6 million 506 thousand tons, so it is not difficult to calculate the subsidy." One insider, who declined to be named, said that the relevant departments would produce hundreds of millions of yuan each year to buy and store cotton, which would be costly to replace the market with policies.

The reporter was informed in the interview that as the industry has been calling for the implementation of the direct subsidy mode for cotton farmers, the open purchase and storage policy will be adjusted next year.