Central Document No. 1: Cotton Purchase And Storage Policy Will No Longer Be Implemented In The Era Of "High Price Cotton" Or End.

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< p > according to voice of china CNR news, this year's "a href=" http://sjfzxm.com/news/index_s.asp "central 1 document < /a > is clear that the pilot project of cotton target subsidy will be launched in Xinjiang, and the cotton purchase and storage policy will be no longer implemented for three consecutive years, which means that cotton prices will be liberalized and be in line with international standards.

For cotton spinning enterprises, the era of having to buy "high priced cotton" will end.

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During the period from < p > 2010 to 2011, China's "a href=" http://sjfzxm.com/news/index_s.asp > cotton > /a > market fluctuated sharply. In order to protect the cotton farmers for three consecutive years, the implementation of the "a href=" http://sjfzxm.com/news/index_s.asp "cotton temporary purchasing and storage policy" /a, the implementation of the de Market acquisition of cotton, the domestic cotton prices were guaranteed.

But the side effects also followed. In 2013, the domestic cotton takeoff price was 20400 yuan per ton, while the international price was only 15000 yuan, and the cotton farmers' interests were protected. The cotton textile enterprises were difficult to survive because of the high cost. Data show that in 2013, the domestic a > cotton textile industry < /a > under the background of the continuous downturn of international and domestic environment, the operating rate of the enterprises decreased and inventories continued to rise. The average operating rate of the cotton spinning enterprises above designated size was about 72%, and the average stock of cotton yarn products was 20-30 days, and the cotton products were difficult to get rid of the deficit situation.

To this end, Chen Xiwen, deputy head of the central rural work leading group, introduced the reform of the grain price formation mechanism. < a > Xinjiang < /a > cotton prices will be the first to test the water.

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< p > > a > Chen Xiwen < /a >: the direction of the reform is to shift from the simple minimum price and the temporary storage of grain to the target price gradually. The government tells farmers what kind of work it is about this year. The price level is a forecast price. But after the actual grain production, there may be new changes in supply and demand. When the grain price is higher than the target price, the farmers will make money, but some of the low-income consumers in the city may have a higher consumption pressure, so the government should subsidize the low-income consumers in cities.

Similarly, when the actual market price of grain is lower than the target price announced by the government, subsidies should be made to farmers.

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< p > analysis shows that the price reform will bring down the cotton price, although it will bring some analgesia to some large inventory enterprises, but in the long run, it will benefit the development of the whole industry. At the same time, low price imported cotton yarn is still hitting domestic cotton spinning enterprises. In 2013, China imported 2 million 100 thousand tons of cotton yarn, an increase of 37.51% compared with 2012.

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