Xinjiang Cotton Farmers Direct Subsidy Policy Is Expected To Be Implemented In September.

< p > Yang Shibin, assistant to the president of the China Textile Industry Federation, said Xinjiang Cotton Subsidy Policy is expected to be implemented in September. The new deal will not cause the domestic cotton price to fall sharply in September this year.

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< p > Yang Shibin told reporters that the new cotton policy was implemented in the 2014/2015 cotton season. The cotton season < a href= "http://www.91se91.com/news/index_c.asp" > New Cotton < /a > will be picked up and circulated in September.

Therefore, the domestic cotton market was still affected by the temporary cotton purchase and storage policy, and cotton prices were not expected to fall.

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Gao Yong, vice president of the textile industry < /a > Federation, said at the China spinning Roundtable forum that the development trend of "steady increase" in 2013 was different from that of China's < a href= "http://www.91se91.com/news/index_c.asp" > the textile industry < /a >. In 2014, it can be concluded that "stability and change".

At the raw material level, China's cotton policy will have more variables.

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< p > "at present, we have decided to implement the cotton farmers direct subsidy pilot project in Xinjiang. Many market participants believe that the implementation of Cotton Subsidy Policy will lead to a fall in domestic cotton prices. I think it may not be because there are many variables in this year's cotton policy."

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< p > Gao Yong said, "in the reserve cotton throwing storage terminal, because of the current stock of cotton reserves up to 13 million tons, at this stage, I think the only effective policy tool for stockpile cotton digestion inventory is the import quota, which will match the import quota with the import quota, and the related policies may lead to cotton flower market variables."

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< p > cotton growers < a href= "http://www.91se91.com/news/index_c.asp" > Direct Subsidy Policy < /a > directly subsidizing cotton planting, because of strengthening the market role, theoretically broke the past "temporary purchasing and storage policy" on the domestic cotton price direct "bottom" and intervention, good downstream textile industry.

The fall in cotton prices will help reduce domestic and foreign cotton price differentials, increase the international competitiveness of domestic textile enterprises, and reduce the production costs of enterprises.

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< p > the current sale price of 10 cotton yarn imported from Guangzhou and other places in Pakistan is only 16800 yuan / ton, and the domestic storage of cotton by 20400 yuan / ton will definitely not work in the future. Once the policy of purchasing and storage is changed and straightening out, the policy will be worked out, and the implementation details will be announced. 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 be beneficial to the development of the cotton industry, but also help the cotton textile enterprises to get out of the predicament, and is also conducive to the rational allocation of market resources.

It is estimated that the cotton subsidy policy will be clear in the cotton growing season this spring. Cotton companies and investors should have a strategic investment vision and pay close attention to the relevant information on direct subsidy policy that may cause qualitative changes in the cotton market pattern.

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< p > cotton direct subsidy policy has been the focus of this year's cotton market.

In short, the implementation of direct subsidy policy can stabilize cotton farmers' income while reducing the cost of raw materials for cotton spinning enterprises and reducing the pressure of import shocks caused by the long-term "upside down" of cotton prices at home and abroad.

At the same time, the implementation of cotton direct subsidy policy means that cotton market in China will start to market regulation from the direct regulation of price by government administrative means.

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< p > at present, there are three main expectations for the implementation of cotton direct subsidy in the market: first, the subsidy is 200 yuan per mu for planting area; two is subsidized by output, and 0.5 to 0.8 yuan per kilogram of Cotton Subsidy; three is the collection and storage of the Cotton Subsidy and the pilot subsidy goes hand in hand, so as to safeguard the interests of cotton growers.

Yu Lijuan believes that no matter what kind of cotton subsidy way the government implements, investors should pay attention to two changes in the cotton market in the late stage: first, the increase and decrease of cotton planting area in the new year; two, whether the domestic cotton market can be completely divorced from policy intervention and complete the marketization after the direct subsidy policy is promulgated and implemented as expected, and how to complete the return of the high price difference between domestic and foreign cotton markets.

From the analysis of the current development trend of cotton market, under the background of up to 10 million tons of national cotton stocks, domestic cotton prices weaken and the cost of imported cotton is closer, but this process of return will be relatively slow.

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