China'S Abolition Of The Cotton Purchase And Storage System In 2014 Is The General Trend.

"We were exhibiting in the United States not long ago," said a person in charge of a textiles import and export company. Spin Enterprises, labor costs far lower than us, and cotton raw material prices are lower than US $5000 yuan ~6000 / ton, there are some basic orders, customers have given them to them, and even we can not help cooperating with them to buy some semi-finished products. In terms of basic funds, we have no competitive advantage at all. 　　　

Those executives also talked about the fact that although Southeast Asia and other countries are not as good as China in terms of quality and delivery date, most customers still choose to place orders in China. However, the same raw materials have seen a wide spread gap in recent years, and customers have finally speeded up the order transfer speed. Before that, only a few orders were transferred to other Asian countries. This trend is particularly evident this year. clothing The processing plants are very hard and some are considering closing or subleasing.

"The implementation of domestic cotton purchasing and storage system has played a certain role in stabilizing cotton prices, but on the other hand, it has also brought about a negative impact, which has led us to lose from the starting line of raw materials. Under the same international environment, our export orders for chemical fiber category clothing have also maintained a certain growth, while the export of cotton clothing has fallen more. The person in charge said.

Many textile and garment enterprises have talked about the past 20 days of the 114th Canton Fair, but many orders have not yet been finalized. There is a great deal of relationship with the price. The cost of raw materials, labor and money has been superimposed together, which has greatly increased the cost, and the pressure of business is very high.

Du Min, director of the rural development research center of the rural economic research center of the Ministry of Agriculture recently said that China's cotton temporary purchase and storage policy will end next year. The direction has been basically determined. But the new cotton season policy in 2014/2015 is still being explored. For example, the Cotton Subsidy Policy should be implemented according to mu yield or mass production subsidy, and the quota and method are still not conclusive.

Sun Ruizhe, vice chairman of the China Textile Industry Federation, said shortly before that the adjustment of cotton purchase and storage policy is indeed in progress, and Xinjiang will be selected as the pilot project.

　　 Textile industry Senior analyst Wang Qian said that there is no official information to announce the abolition of the cotton purchase and storage system, but this is the general trend. On the one hand, since the implementation of the cotton temporary purchase and storage policy in 2011, the state has accumulated about 10 million tons of cotton temporarily and has a huge stock and financial pressure. On the other hand, domestic and foreign cotton prices will eventually need to be integrated. Market regulation is better than policy regulation. The biggest problem is that the domestic and foreign cotton prices are totally fragmented. At present, the domestic cotton storage price is 20400 yuan / ton, while the international cotton price has dropped to 15000 yuan / ton.

It is widely expected that the temporary cotton purchase and storage policy with strong administration will end. The cotton subsidy policy will be the fastest in March next year. Wang Qianjin believes that it is a feasible method to transform the policy of purchasing and storage into direct subsidy to cotton farmers. At the same time, auxiliary storage, quota and other policies are conducive to changing the overall downturn of textile and clothing.

This year, despite the fact that China is still firmly in the position of the first textile country, exports have maintained a certain growth rate, but the growth rate is slower than that of some neighboring countries. In October of this year, China's textile and apparel exports totaled $233 billion 560 million, an increase of 11.3% over the same period last year. Over the same period, Vietnam's clothing and textile exports increased by 18.7% to 14 billion 800 million US dollars over the same period.

Wang Qian said, cancel cotton After the temporary purchase and storage, the decline in cotton prices will help enterprises to reduce costs, not only to promote exports, but also to help domestic textile and apparel get out of the predicament. This year, the domestic market has plunged into an unprecedented downturn. The growth rate has dropped from single digit growth to two digit growth over the past years.