New Cotton Subsidy Policy: Domestic Cotton Prices Rising

< p > in the background of domestic cotton enterprises having to compete for the quota of imported cotton because of the high cotton price, the NDRC has identified Xinjiang as the only pilot area for cotton farmers' direct subsidy policy.

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< p > industry insiders told reporters that the cotton purchase and storage policy can not guarantee that cotton farmers can get state subsidies. On the contrary, most of the profits have been earned by middlemen. The direct subsidy way can at least guarantee that cotton farmers can get direct benefits.

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< p > Review 2013, the state promulgated the cotton purchase and storage policy to ensure the interests of cotton farmers, which also caused domestic and foreign cotton prices to hang upside down seriously, and weakened the downstream competitiveness of "a target=" _blank "href=" http://www.91se91.com/ "> textile < /a > manufacturing industry.

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< p > there is news that from 2014 onwards, the state will cancel the temporary purchase and storage policy, taking Xinjiang as a direct subsidy policy of 380 yuan per mu.

For this rumor, some cotton growers expressed disappointment because compared with the 2000 yuan / mu cotton planting cost, the standard of 380 yuan / Mu was far from expected.

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< p > however, insiders have analyzed that if the < a href= "http://www.91se91.com/news/index_q.asp" > subsidy < /a > standard is 380 yuan per mu, then according to the average yield per unit area in Xinjiang, each kilogram of seed cotton can get 1 yuan subsidy.

If the purchase price of seed cotton in Xinjiang is maintained at around 8.5 yuan per kilogram in 2014, according to this calculation, if the price of seed cotton can reach 7 yuan per kilogram next year, plus 1 yuan / kg subsidy, cotton farmers will be able to guarantee the cost and make a profit.

If the target price subsidy reaches 9 yuan / kg, then it is about 0.5 yuan higher than that per kilogram, although the rate is not large, but the income from the policy of purchasing and storing is still improved.

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< p > insiders believe that after the introduction of the new policy, domestic cotton prices are expected to decline by 15%, and the difference between domestic and foreign cotton prices will be narrowed. Cotton prices will be good for the downstream cotton spinning enterprises.

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< p > however, due to the uncertainty and uncertainty of the current policy, most cotton textile enterprises still lack confidence.

Some analysts point out that there are two kinds of domestic cotton policies. One is that the state will continue to collect and store, and the two is to completely liberate cotton prices and fix prices by the market.

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< p > Ma Junkai, Secretary General of Dezhou Cotton Association of Shandong Province, told the media that at present, the attitude of the country is very clear. We must ensure the cotton prices in Xinjiang, and the cotton prices in other parts of the country are completely liberalized and priced by the market.

He said that from the current situation, the state continued to purchase and reserve capacity.

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< p > "in fact, foreign customers such as the United States are waiting for the implementation of China's cotton purchase and storage policy, and wait for the future price of cotton to place further orders."

A cotton salesperson told reporters.

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< p > < < a href= > http://www.91se91.com/news/index_s.asp > cotton > /a > price and cotton policy may be more difficult to predict than in the past two years.

Gao Yong, vice president and Secretary General of the China Textile Industry Federation, pointed out at the 2014 China spinning Roundtable forum that after the new cotton went public this year, although the state no longer bought and sold it, there were 13 million tons of cotton in the national treasury, which was equivalent to storing more than two years of cotton production. It would take several years to digest cotton, and the country has only one means of digestion at present, that is, import quotas.

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