2014 Cotton Market Policy Preview National Direct Subsidy Is Expected To Replace Temporary Reserves

< p > recently, the relevant departments such as the Ministry of agriculture and the China Textile Industry Federation have disclosed to the outside world the abolition of < a href= "http://www.91se91.com/news/index_c.asp" > cotton < /a > storage and withdrawal, instead of taking the direction of direct subsidy to the state, basically determining the 2014/2015 year, China's temporary cotton purchase and storage policy will no longer be implemented, and the direct subsidy pilot project may be implemented in Xinjiang.

People familiar with the matter told futures daily that although the details of the cotton farmers' direct subsidy have not yet been finalized, there has not been a unified plan at the level of direct subsidy and direct subsidy. However, the policy direction that the state has shifted from temporary purchasing and storage to 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.

Central Plains futures cotton analyst Wang Wei said.

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< p > textile industry senior analyst Wang Qian said that the abolition of cotton < a href= "http://www.91se91.com/news/index_q.asp" > storage and purchase policy < /a > 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, domestic cotton storage 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.

Huizhou merchants cotton analyst Wang Shufei said, "domestic cotton loses the" underpinning "policy, cotton prices will fall sharply, which is conducive to enterprises at a lower price < a href=" http://www.91se91.com/news/index_cj.asp "> procurement raw materials < /a >, thereby improving economic efficiency and revitalize the relatively low market.

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< p > at the same time, Wang Qian believes that from the purchase and storage to the cotton farmers directly supplement, the state needs auxiliary storage, quotas and other policies to help change the overall downturn of the textile and garment industry.

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