Next Year Cotton Direct Subsidy Is Expected To Replace Temporary Reserves.

< p > next year, our country will cancel the cotton purchase and storage policy and replace it with the policy of directly subsidize cotton farmers.

According to the insiders, cotton prices will be more marketable, and domestic cotton prices will be in line with international cotton prices, thereby stimulating domestic cotton prices down.

At that time, the cost of cotton production in textile enterprises can be reduced and exports will be promoted.

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< p > China will abolish the controversial soybean and cotton purchasing and storage mechanism, instead of directly subsidize farmers, while the "a href=" http://www.91se91.com/news/index_c.asp "cotton farmers" /a "direct subsidy policy is the fastest in March next year.

Zhang Wenmin, general manager of Wanda cotton industry division, believes that the abolition of the cotton purchase and storage policy and the policy of directly subsidized farmers are the expectations of the vast majority of textile enterprises, which will bring positive benefits to the stability of the industry.

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< p > recently, the relevant departments such as the Ministry of agriculture and the China Textile Industry Federation have disclosed to the outside world the direction of the abolition of cotton purchase and storage, instead of taking the direct subsidy of the state. It is basically determined that the cotton interim purchase and storage policy will no longer be implemented in 2014/2015, and the direct subsidy pilot project may be implemented in Xinjiang.

People familiar with the matter told a href= "http://www.91se91.com/news/index_cj.asp" > futures daily < /a > reporters, although the details about cotton farmers' direct subsidy have not yet been finalized, there has not been a unified plan at the level of direct subsidy price and direct subsidy mode, but the policy direction of the state from the temporary purchase and storage to the direct subsidy to cotton farmers has been determined.

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< p > "this has made the domestic cotton market temporarily relying on the temporary reserve price" has lost strong support.

Many cotton enterprises believe that domestic cotton prices will fall next year, which will benefit textile enterprises and reduce the cost of cotton production by textile enterprises.

In the long run, the move is a good way for the entire textile industry, helping narrow the price of cotton within and outside the country and stimulating domestic cotton prices to link up with international cotton prices.

Zhongyuan futures cotton analyst "a href=" http://www.91se91.com/pioneer/ "> Wang Wei < /a >.

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< p > textile industry senior analyst Wang Qian said that the abolition of the cotton purchase and storage policy 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, accounting for 60% of the global inventory, resulting in huge storage capacity and financial pressure. On the other hand, domestic and foreign cotton prices will eventually need to be integrated, and the biggest problem of purchasing and storage is the complete separation of domestic and foreign cotton prices. At present, the domestic cotton purchase and storage price is 20400 yuan / ton, while the international cotton price has dropped to 15000 yuan / ton.

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After the abolition of the temporary cotton purchase and storage policy, the cotton price will decline, which will help enterprises reduce the cost of raw materials, not only promote exports, but also help the domestic textile and garment industry to get out of the predicament. "P"

This year, the domestic market has plunged into an unprecedented downturn. The growth rate of the industry has dropped from single digit to two figure in many years.

Wang Qianjin said.

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< p > for cotton growers, cotton planting direct subsidy can directly improve the cotton growers' planting efficiency, thereby enhancing their planting enthusiasm, and is conducive to the improvement of cotton self-sufficiency rate and the safety of national cotton.

< a href= "http://www.91se91.com/news/index_cj.asp > > Hui merchants futures < /a > cotton analyst Wang Shufei said:" domestic cotton loses the "bottom up" policy, and cotton prices will drop sharply, which will help enterprises purchase raw materials at lower prices, thereby enhancing economic efficiency and revitalize the relatively depressed market.

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< p > > at the same time, < a href= "http://www.91se91.com/pioneer/" > Wang Qian < /a > thinks that from the purchase and storage to the cotton farmers, the state needs auxiliary throwing and storing quotas and other policies to help change the overall downturn of the textile and garment industry.