Xinjiang Pilot Cotton Direct Subsidy Good Textile Enterprises

At the end of the year, the acquisition and processing of seed cotton in South Xinjiang has basically ended. The idle cotton growers everywhere listened to the news of cotton direct subsidy in Xinjiang in 2014 and figured out how to grow cotton this year.

In 2014, the state will cancel the existing cotton temporary purchase and storage policy and carry out cotton direct subsidy pilot work in Xinjiang. As the people's Government of the autonomous region organized several working groups to go to various cotton producing areas, intensive research and consultation were made on cotton planting, selling, processing and so on. The news seemed to be confirmed. In the third Plenary Session of the 18th CPC Central Committee, the party put forward: "building a unified and open, competitive and orderly market system, making the market play a decisive role in the allocation of resources", "improving the price formation mechanism of agricultural products (000061 shares)", and laying stress on the role of the market in forming the price function, pointed out the direction for the Cotton Subsidy in Xinjiang. "The policy is being formulated and perfected, and it will be introduced in 2014. It is not clear how to make up, how much and how to ensure subsidies. Autonomous Region Development and Reform Commission, a relevant person in charge told reporters. In the face of cotton subsidies, how do cotton growers and buying and selling enterprises and cotton related institutions look? Recently, reporters came to Akesu, one of the largest cotton producing areas in Xinjiang, to interview.

Farming:

It is also necessary to reduce the cost of cotton planting.

Reporters in Akesu's Awati, Xin He, Sha Ya and other large cotton producing counties interview, from time to time to see cotton fields on both sides of the highway interplanting jujube, apple and other economic forest crops. Bai and bin, deputy director of agriculture in Awati, told reporters that the benefit of planting cotton in recent years is much lower than that of grain and other cash crops. Some farmers are planting economic crops such as fruit trees at the same time of planting cotton. Therefore, in recent years, the cotton planting area of some large cotton growing counties has declined.

In Awati, Lu Tai Feng harvest cotton Co., Ltd. has a relatively large scale and a relatively long industrial chain, including planting, purchasing, processing and so on. Spin And other industries, cotton planting area of 148 thousand mu, on the basis of 63 thousand spindles, in 2013 added 65 thousand new production lines. General manager Li Jingquan is also the president of the local cotton association. Therefore, the view of cotton industry is more comprehensive and objective.

"Direct subsidy is a good thing. On the one hand, it can directly protect the interests of cotton farmers. On the other hand, it can promote the marketization of cotton prices, and make domestic cotton prices step in line with international cotton prices, and reduce the cost of cotton production in textile enterprises, but it is not easy to carry out them." Li Jingquan talked about his own views. In his view, to protect cotton production fundamentally and raise farmers' enthusiasm for planting cotton, the amount of direct subsidy should not be lower than that of grain. In addition to direct subsidy, it is also necessary to reduce planting costs. In addition, the decentralization and individualization of cotton growers in China are the main difficulties in implementing direct subsidy, and need to be well designed and perfected.

Li Jingquan told reporters that even in the most suitable cotton growing areas such as Akesu, due to the rising prices of agricultural chemicals and pesticides and artificial picking fees, the cost of small-scale planting of cotton farmers is about 2200 yuan per mu.

Li Jingquan felt the same way. Bai Hebin told reporters that cotton is a labor-intensive industry, and the degree of domestic cotton planting mechanization is far lower than that of grain cultivation, and the cost is obviously higher than that of planting crops. It is a large cotton farmers. If mechanization fails to keep up, they will not make money. The cost of planting cotton has reached 2.2 yuan to 2.5 yuan per kilogram, and the cost of cotton planting is too high.

In order to reduce costs, this year, some towns in Awati began to pilot cotton mechanization picking up, and are ready to organize retail groups in the form of cooperatives to promote large-scale planting and facilitate mechanical operation. Bai Hebin introduced some situations in their county.

Chen Yu, director of the Akesu agriculture office, suggested that the cotton planting should be strengthened and the late flowering varieties should be developed to facilitate mechanical harvesting. The state should adjust the subsidy for agricultural machinery and introduce the testing standard for machine picked cotton.

Earn money:

The whole industry chain is a way out.

If direct subsidy is applied, domestic cotton prices will be closed to the market in 2014, and prices will fall, which will benefit the textile enterprises. In the interview, the cotton involved organizations have such a consensus.

But cotton farmers have two worries: first, if the subsidy is not enough, cotton prices will drop too low to earn money, and two will be difficult to sell cotton.

"There is a risk of a total cancellation of temporary storage." Hu Xiaolun, the legal representative of Sha Ya Kang cotton company, thinks that if the direct subsidy is to really protect the interests of cotton farmers, it is necessary to ensure that cotton farmers sell cotton and get cotton sales in a timely manner, and there is no difficulty in selling cotton. During the interview, some cotton farmers and acquisition processing enterprises had such a view.

Li Guoping is a large cotton farmer in Akesu. In 2013, he planted 5000 mu of cotton. He was most worried that if he cancelled the purchase, he could not sell cotton or earn less money. "If the state does not have the lowest guidance price, we will grow cotton in the heart."

Compared with cotton growers, cotton processing enterprises will also consider their own profits, sandwiched between cotton farmers and cotton spinning. If there is no profit margin, cotton processing enterprises will limit cotton and cause cotton growers to "sell cotton difficultly".

Some people think that direct subsidy has little impact on processing plants, and processing enterprises will follow suit.

"We have an account in the heart of our acquisition and processing enterprises." Teng Minli, legal representative of Akesu Hongchang cotton company, thinks that the price of seed cotton will close to the market in 2014, and the price should not exceed 7.5 yuan per kilogram. For example, lint is 17000 yuan per ton, which is equivalent to 7 yuan per kilogram of cotton seed, which is higher than the market expected cotton price. According to this price, acquisition processing enterprises will not do a losing business. "Higher textile companies, no more, who do we sell to cotton? Even this is more expensive than imported cotton."

Chen Shiwen, owner of cotton processing plant in Tengda, Akesu, said that if the country did not have the backing price, "next year, our enterprise acquisition will be very cautious. We can only take a look at the three step." He believed that the state should control the bottom line, launch contingency plans when necessary, and introduce a minimum purchase price.

It is best to follow the grain subsidy policy and implement the parallel policy of direct subsidy and minimum purchase price. In addition, we should strengthen agricultural insurance (assured insurance) and protect the interests of cotton farmers when encountering major disasters. This is the aspiration of many cotton growers and processing enterprises.

Li Jingquan believes that we should stand on the whole cotton industry chain to see problems, improve the technological content and value-added products of Xinjiang cotton spinning enterprises, and enhance their market competitiveness. Only when the whole industrial chain is alive, the worries of cotton farmers will disappear.

Loans:

Timely acquisition of funds is the absolute principle.

If cotton growers are most worried about "selling cotton is difficult", and buyout companies are more worried about whether there are adequate acquisition funds.

Adequate acquisition funds are the key to ensure that cotton farmers do not have difficulty in selling cotton. Hu Xiaolun thinks.

It is understood that for a long time, the Agricultural Development Bank has invested 70% of the purchase funds of the whole Xinjiang in the supply of cotton purchase funds. And the cotton purchase fund of the agricultural development bank belongs to the policy guidance loan business which has no risk and has no national coverage.

Because most cotton purchasing and processing enterprises are small in scale, fixed assets are generally not more than 20 million yuan, and the demand for purchasing capital is very large, they often have to borrow hundreds of millions of yuan to acquire funds to meet their needs, Hu Xiaolun told reporters.

In the case of purchase and storage, cotton enterprises can repay loans in time after sales. In the market trend of cotton purchase, the agricultural development bank will implement full coverage of the loan amount guarantee in accordance with the commercial liquidity loan management. Although it can effectively prevent market risks, it will certainly raise the threshold of corporate loans significantly, and will eliminate a large number of cotton enterprises, which will affect cotton farmers' sale of cotton, resulting in another kind of "selling cotton difficult". A loan officer from a Akesu Agricultural Development Bank has such worries.

Experts predict that after the cotton direct subsidy, the domestic cotton prices will hardly be lower than the foreign cotton prices in the short term. The domestic consumption is not likely to continue. In addition, Xinjiang is far from the sales area, the transportation difficulties and the limited cotton use within the territory. The difficulties in the sale of cotton will continue to be a difficult problem in the development of Xinjiang's cotton industry. In case of sales difficulties, the agricultural development bank loan will face unprecedented security risks.

The "guarantee purchase and risk prevention" will make the agricultural bank face a dilemma. The cotton producers' organizations in various cotton producing areas organize credit personnel to increase their research efforts, and discuss and discuss management measures. At the same time, it is hoped that relevant management measures should be formulated. For example, the purchase price of cotton is below a certain level. The minimum purchase price policy should be launched in a timely manner, and local reserves should be put in place to prevent fluctuations in seed cotton prices and affect cotton farmers' income.

Some people in the industry suggested that the cotton purchase fund should be separately accounted for and the national level risk compensation mechanism should be set up to further adjust and improve the relevant credit policy and management mechanism of the agricultural development bank to ensure the healthy operation of cotton purchasing funds.

Experts believe that we should give full play to Xinjiang's quality. cotton The advantage of the base is to increase the intensity of policy tilt, establish a modern textile base and support the whole industrial chain of Xinjiang in the light of the special circumstances of the Xinjiang. This is of special significance to the leap forward development of the economy and the long-term stability of the society.

Extended reading

Cotton industry in Xinjiang

Xinjiang is the main cotton producing area in China. In recent years, 60% of China's cotton is produced in Xinjiang. Affected by the natural environment, cotton yield per unit area in Xinjiang is higher than that in the mainland, and the quality of cotton is significantly higher than that in the mainland. The Uighur farmers living in Xinjiang about 70% generations have been planting cotton as the main source of life. How to consolidate the high quality cotton base in Xinjiang, how to ensure the improvement of cotton farmers' living standard, and then ensure the economic and social stability in the border areas has far-reaching strategic significance.

Xinjiang is far from the mainland, and the transportation is inconvenient. Over the years, the capacity of railway and highway is tight, and the number of transportation and transportation is much less. The cost of many commodities including cotton is higher than that of the mainland. With the acceleration of national support for Xinjiang, in recent years, many production and Construction Corps have been built and imported from Xinjiang to Xinjiang. Textile enterprises In order to solve the problem of Xinjiang cotton and improve the efficiency of cotton growing, but the international financial crisis and the huge difference between domestic and foreign cotton caused the whole industry slump, and Xinjiang's textile technology content and low added value, lack of market competitiveness.

From a long-term perspective, it is imperative for the cotton industry to move westward and the establishment of a modern textile base in Xinjiang. It not only solves the cotton problem in Xinjiang, but also solves the cotton problem in China.

Xinjiang branch of Agriculture Development Bank

Support cotton Acquisition Review

In 2010, the cotton market experienced a roller coaster market. Prices rose and the cotton prices continued to fall the following year. In order to protect the interests of cotton farmers, the state issued a temporary reserve price of 19800 yuan / ton.

In the year of 2011, the price of the State Reserve was 19800 yuan / ton. In that year, the Xinjiang branch of the Agricultural Development Bank launched a cotton purchase loan of 51 billion yuan, supporting the purchase volume of 2 million 500 thousand tons, accounting for 88% of the total cotton output in Xinjiang (the statistics Bureau released 2 million 840 thousand tons of data).

In the year of 2012, the price of the State Reserve was 20400 yuan / ton. In that year, the Xinjiang branch of the Agricultural Development Bank launched a cotton purchase loan of 61 billion 500 million yuan, supporting the purchase volume of 3 million 150 thousand tons, accounting for 78% of the total cotton output in Xinjiang (the Statistics Bureau released 4 million 60 thousand tons of data).

In 2013, the state continued to carry out the reserve price of 20400 yuan / ton. In that year, the Xinjiang branch of the Agricultural Development Bank launched a cotton purchase loan of 64 billion 300 million yuan, supporting the purchase volume of 3 million 170 thousand tons, accounting for 79% of the total cotton output in Xinjiang (the Statistics Bureau released 4 million tons of data).