Document No. 1: Cotton Target Price Subsidy Pilot In Xinjiang

< p > central document No.1 pointed out that this year, China will launch a pilot project to subsidize the price of soybean and Xinjiang cotton in Northeast and Inner Mongolia.

According to the insiders, it is possible that cotton will be used as a pilot project in Xinjiang. Finally, the price of domestic cotton will be converged with < a href= "http://www.91se91.com/news/list.aspx Classid=101112107101" > imported cotton < /a >, which will be conducive to the development of cotton industry.

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< p > 2014, the Central Document No. 1 put forward a pilot project to target price subsidies for cotton planting in Xinjiang. Authorities said the statement formally announced the end of the temporary cotton purchase and storage policy and the implementation of Xinjiang cotton farmers direct subsidy policy.

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< p > the source said, at present, the target price subsidy has not yet been completely settled, and the subsidy price and subsidy method has not yet been finalized. "There are rumors in the market that the subsidy per mu is 200 yuan and so on. However, it has not been determined yet. At the same time, it is not clear what kind of cotton policy will be implemented in other provinces outside Xinjiang."

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< p > a number of authorities have told the great wisdom news agency that the temporary cotton purchase and storage policy will not be implemented in the 2014/2015 cotton season. The cotton farmers direct policy in Xinjiang will not be implemented.

The policy will lead to a decline in domestic cotton prices and a reduction in cotton price difference at home and abroad, which is a major policy advantage of China's textile industry in 2014.

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< p > stopping the implementation of temporary cotton purchase and storage policy will also lead to a decline in cotton production in less than a href= "http://www.91se91.com/news/list.aspx Classid=101112107105" > Xinjiang < /a >

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The cotton purchase and storage price increased from 19800 yuan / ton to 20400 yuan / ton since the implementation of the cotton purchase and storage policy in 2011 P, but at the same time, the international cotton price dropped to 15000 yuan / ton all the way.

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< p > in order to reduce the pressure of domestic high cotton prices to cotton spinning enterprises, the state has implemented the 3:1 quota of import quotas, which is a drop in the bucket for cotton spinning enterprises at the edge of losses, but what worries the enterprises is that the quality of cotton has dropped sharply since the purchase and storage.

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Zhang Wenmin, general manager of the cotton industry division of Wanda futures, believes that once the policy of purchasing and storage is changed and straightening out, the implementation details will be promulgated. At that time, the domestic cotton price will go through a large process of policy making. Finally, the price of domestic cotton and imported cotton will converge. This will not only benefit the development of cotton industry, but also help the cotton textile enterprises to get out of the predicament, and also conducive to the rational allocation of market resources. P

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Yu Lijuan, senior analyst at the P > Jinshi futures cotton, said that the implementation of < a href= "http://www.91se91.com/news/list.aspx Classid=101112107102" > Direct Subsidy Policy < /a > can reduce the raw material cost of cotton spinning enterprises while reducing the income of cotton farmers, and reduce the import pressure caused by the long term "upside down" of domestic and foreign cotton market prices.

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< p > Yide futures analyst Yi Le pointed out that although the cotton subsidy policy is in line with expectations, the mainland's cotton policy in the new year is not known. The cost of planting cotton in the mainland is already higher than that in Xinjiang. If only Xinjiang is subsidized, the cotton planting enthusiasm in the mainland will be greatly reduced. According to the cotton coordination survey in January, the mainland's planting area has decreased by nearly 10% in the new year, which is on the basis of continuous reduction.

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< p > Yi Le said that Xinjiang's cotton output has reached more than half of the country's total output. The proportion of Xinjiang's output will be even higher after the direct subsidy. This will bring about a problem. Excessive concentration in one area will increase uncertainty. After all, the inconvenient pportation of Xinjiang cotton is a long-standing problem, and weather and other reasons. Paying close attention to the specific details of the spring subsidy policy will have a significant impact on cotton prices in the future.

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