The Policy Of Purchasing And Storing Soybean Cotton Has Officially Ushered In The Turning Point.

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< p > January 19th, the CPC Central Committee and the State Council formally promulgated some opinions on deepening the rural reform in an all-round way and speeding up the modernization of agriculture. (commonly known as "Document No. 1"), it was proposed that in 2014, the pilot of northeast and Inner Mongolia soybean and Xinjiang < a href= "http:// www.91se91.com/news/index_c.asp" > cotton > /a > target price subsidies should be launched. Meanwhile, the policy of minimum purchase price for rice and wheat and the temporary storage and purchase policy of corn, rapeseed and sugar should continue.

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< p >, which means that the policy of soybean storage and purchase has been implemented for 5 years, and it will usher in the turning point.

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< p > it is understood that in order to ensure the planting area of agricultural products and protect the interests of farmers, in 2004, China began to implement a minimum grain purchase policy for wheat and rice. Since 2008, it has implemented a temporary storage and purchase policy for corn, soybean, cotton and rapeseed crops.

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< p > however, with the deepening of these a href= "http://www.91se91.com/news/index_q.asp" > City acquisition policy < /a >, it has caused many problems and contradictions, especially distorting the "market price" and the chaos in the execution, which is even more criticized.

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< p > according to Wang Chao, vice president of Henan Cotton Association, during the implementation of the cotton purchase and storage policy, China bought tens of millions of tons of cotton from the farmers at a price higher than the market price, which caused the domestic cotton market to be out of touch with the international cotton market. Serious price inversion appeared, and domestic cotton prices were 40% higher than the global benchmark price.

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< p > not only cotton, but also soybean.

For example, in 2013, the soybean temporary storage and storage price was 4600 yuan / ton, and the US soybean import converted to port cost less than 4200 yuan / ton, and the South American soybean was as low as 4000 yuan / ton, and the price inversion was serious.

Under such circumstances, driven by squeezed profits, most of the domestic soybean crushing enterprises rely heavily on imported soybeans, and domestic soybean sales are not good enough, and farmers complain bitterly.

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What is more serious than p is that the stabilization and protection of crop acreage expected by the purchasing and storage policy has also been a red light. Henan, the main producing area of soybean or the main cotton producing area of Heilongjiang, has experienced a sharp shrinkage and is showing a continuous shrinking trend, which needs to be improved.

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< p > this situation even made the industry association that had supported the policy at the same time unexpectedly.

Gao Fang, vice president of China Cotton Association, said at an industry conference: "this is not our intention. When we proposed to make policies, we did not intend to affect textile mills to such a large extent.

We did not expect this policy to be implemented for such a long time.

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< p > < strong > explore the "direct subsidy" will give the pricing power to the market < /strong > /p >

< p > in fact, since 2012, the discussion on temporary withdrawal and withdrawal policy from soybean, cotton and rapeseed products has been frequent in the market.

Some analysts say that although the purpose of purchasing and storing policies is to protect the interests of farmers and increase farmers' enthusiasm for production, however, the beneficiaries of many years' purchasing and storage policies are not farmers, but middle traders.

There are not many benefits from farmers.

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< p > this has also attracted the attention of the national development and Reform Commission. The research team has conducted a field investigation on the situation and impact of the policy of purchasing and storage. In July 2013, it clearly pointed out that grain purchasing policy, which focused on the minimum purchase price and temporary storage and storage, seriously distorted the price of grain market in the country, and promptly explored the implementation of differential subsidies and stable price measures to distort grain market, and gradually replaced the minimum purchase price and temporary purchase and storage policy.

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< p > and the document No. 1 of the state in 2014 clearly ended the end of the 5 year long storage and purchase policy of soybean and cotton, and offered the banner of target price subsidy.

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< p > the so-called target price, that is, the departments concerned determine the target price according to the price level, grain production profit and farmers' income growth.

After harvest, if the market price is higher than the target price, the farmers will sell according to the market price; when the market price is lower than the target price, the state will directly subsidize the difference between the target price and the market price.

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< p > the change from "purchasing and storing policy" to "direct subsidy policy", in Wang Chao's view, the signal released by this change is a sign that domestic cotton and soybean prices will enter the market pricing mode. With the end of the state's "bottom up" behavior of cotton prices, the domestic cotton flower prices will return to the market, and the long-term price inversion phenomenon will also be improved.

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< p > it is understood that at present, in the northeast and Inner Mongolia soybean and Xinjiang cotton farmers direct subsidy pilot, the specific details of the direct subsidy policy have not yet been finalized, especially in the direct subsidy price and way and so on has not formed a unified plan.

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< p > for this reason, some analysts pointed out that along with the landing and implementation of direct subsidy policy, domestic cotton prices in 2014 may fall due to closer to the market, which is conducive to the upgrading of the domestic textile industry < a href= "http://www.91se91.com/news/index_s.asp" > International Competitiveness < /a >, but cotton farmers worry that subsidies will not affect their incomes after the fall of cotton prices, and the situation of excessive supply of cotton may lead to new "selling cotton difficult".

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< p > it is noteworthy that although "Document No. 1" pointed out that the policy of "direct subsidy" has not been implemented for a short time in the mainland, it is not yet clear what kind of cotton and soybean policy will be implemented.

This has aroused the concern of the insiders in the mainland. Without the support of the policy of purchasing and storage, there is no guarantee of direct subsidy policy. It will greatly hurt the interests and planting enthusiasm of the farmers and farmers in the mainland, including Henan, and thus have a greater impact on the whole industry and the market.

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