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    What Are The Problems Restricting The Development Of Cotton Textile Enterprises?

    2014/3/20 9:16:00 15

    High Cotton PriceFinancingCotton Spinning

    Four problems such as P > high cotton price and expensive financing restrict domestic cotton a target= "_blank" href= "http://www.91se91.com/" > textile < /a > development < /p >


    < p > Hunan Dongxin group is a large-scale textile enterprise with key dispatching of the Ministry of industry and the Ministry of industry and Hunan province. The leading textile enterprise in Hunan province has 500 thousand yarn spouts, 5000 steam streams and 5000 looms, with 8000 employees and 100 thousand tons of cotton per year.

    In recent years, with the continuous increase of raw material costs, labor costs, unreasonable taxes and various charges, enterprises have been in a state of meager profit, especially as a large cotton producer.

    At present, the amount of cotton used by the company has been reduced by 40%, and the new fiber has been pformed. However, the cost of cotton is still very high.

    < /p >


    < p > strong > high cotton price competitiveness weakened < /strong > < /p >


    < p > there is a saying in the industry, "Cheng also cotton, cotton also defeated."

    The fluctuation of cotton price and the difference between cotton prices at home and abroad are the most sensitive nerves affecting cotton textile enterprises.

    On the face of it, the high cotton price in China is the main reason for the high cost of enterprises and the reduction of orders. However, tracing back to the source, it has long been troubled by the cotton import quota system, the levying of high sliding tax and the "high tax and low deduction" policy, which has led to the failure of enterprises to participate in international competition.

    < /p >


    < p > in fact, the problem facing cotton textile enterprises is not the high price of cotton in China, but the difference in cotton price with thousands of Yuan abroad.

    It can be said that China's cotton textile enterprises have struggled with cotton prices for thousands of yuan.

    Nowadays, the yarn of 40 or less cotton has not been competitive in the market, and the yarn orders below 40 of Dongxin company have been stolen by India and Southeast countries.

    < /p >


    < p > cotton price mechanism at home and abroad is the main reason for the difference in cotton price at home and abroad.

    International cotton prices fluctuate according to market demand and supply, while domestic cotton prices are supported by the purchase and storage price and import quotas.

    Since last year, cotton purchase and storage price is 20400 yuan / ton.

    Because the price of storage and storage is much higher than that of the international market, the difference between domestic and foreign cotton prices remains high.

    At present, the price difference per ton is still hovering around 4000 yuan.

    < /p >


    < p > in the face of the high cotton price, Chinese enterprises can not independently use the overseas raw material market to "cut the peak and fill the valley".

    According to the WTO agreement, China will import 893 thousand tons of cotton per year and implement 1% preferential duty, but the imported cotton excluding quotas will levy a sliding tax of 5%~40%.

    The Levy of sliding tax is equivalent to setting the bottom line for imported cotton price, its purpose is to reduce the impact of imported cotton on domestic cotton market and ensure the interests of cotton farmers.

    However, because the import quota is far from meeting the demand, even the enterprises with low quotas or quotas are not able to get enough benefits even if they import cotton.

    That is to say, China's cotton textile enterprises are participating in international competition at the cost of raw materials higher than rival 1/3, and the higher cost is difficult to digest by technological innovation and efficiency improvement.

    < /p >


    < p > abolition of quota system and sliding tax have become the unanimous voice of the cotton textile industry.

    Abolish the high sliding tax, allowing Chinese enterprises to make free use of overseas procurement to stabilize raw material prices, and prevent Pakistan, India and other countries from raising their prices in the formulation of cotton export policies, so as to gain advantages for their textile exports.

    In addition, the Cotton Subsidy Policy with higher appeal has finally begun to pilot in the new cotton year this year, which is undoubtedly good news for cotton textile enterprises. But whether cotton can achieve the market and high cotton price dilemma is going to be a matter of time.

    But it is certain that the protection of agriculture should not be sacrificed at the expense of the international competitiveness of the industry. If the cotton textile industry is depressed, cotton growers and about 3000000 cotton textile workers in the whole country will still be in "deep water".

    < /p >


    < p > < strong > "financing is expensive", the burden of enterprises is less than /strong > /p >


    < p > in recent years, "financing expensive" has also become the most headache problem in the cotton textile industry.

    In the survey of more than 500 enterprises in the China Textile union statistical center, nearly 4 percent of the enterprises' financing interest rate is 10 percentage points higher than the bank benchmark rate, such as Shandong and other places, the textile industry loan interest rate generally floats more than 30%, and quite a lot of enterprises are forced to accept the acceptance bill business.

    < /p >


    < p > take account of Dongxin company's loan of 10 million yuan as an example.

    First, the bank 1~3 period < a href= "http://www.91se91.com/news/index_s.asp" > Loan < /a > the benchmark interest rate is 6.65%, then up to 50%, and the interest rate is 997 thousand and 500 yuan.

    Secondly, the bank requires that the loan be made full acceptance in 6 months, which means that the enterprise will take the draft to the supplier, and the supplier can only get the money in 6 months.

    If the supplier is unwilling to wait for 6 months, the company needs to pay the discount interest 14% and increase the interest rate by 700 thousand yuan.

    Finally, enterprises need to go to the Guarantee Corporation designated by the bank to guarantee the minimum 3% guarantee cost.

    As a result, a real loan interest rate of 10 million yuan is as high as 27%.

    In addition, banks sometimes require enterprises to deposit a certain margin on the basis of ensuring loan to deposit ratio.

    < /p >


    Less than P, the banking industry, which should have served the real economy, has become a stumbling block to the development of the real economy.

    If we want to make loans, we must accept the conditions of acceptance and discount. At the end of the year, the interest rate of banks will be as high as 30%, which will make a great impact on cotton textile enterprises.

    At present, the guarantee conditions of banks are high and the cost of financing is high. Cotton textile enterprises have paid interest on banks for their meager profits.

    < /p >


    < p > textile industry is an important livelihood industry in China, creating a large number of jobs for the country.

    Dongxin company currently offers 8000 jobs, which can be up to 12000 at a time.

    However, the high cost of financing has made cotton textile enterprises less profitable, which is no longer conducive to the development of enterprises.

    If the state can coordinate financial institutions, increase support for the textile industry, reduce the guarantee conditions and reduce the full margin, it will have a significant effect on alleviating the pressure of enterprise funds and enhancing the vitality of enterprise development.

    < /p >


    < p > < strong > labor constraint enterprises are worried. < /strong > /p >


    The new generation of migrant workers such as P > 80 and post-90s are having a great impact on China's manufacturing industry, especially for the labor-intensive textile industry.

    According to the sample survey of China Textile Corporation, the average salary of textile industry staff increased by more than 15% last year, but more than 80% of the enterprises still have a shortage of labor.

    Textile enterprises generally reflect that the new generation of migrant workers are mostly single children, and their family structure and growth environment are quite different from those of the past.

    Because the textile workshop is mostly noisy, heavy smell, bad work environment, labor intensity and salary is not high, they prefer to do the service industry, do not want to work in textile mills.

    This has led to the difficulty of recruiting workers in textile enterprises.

    < /p >


    < p > for cotton textile industry, recruitment is difficult and employment is difficult.

    At present, the average age of the employees of Dongxin company is nearly 45 years old. A nearly 8000 workers and enterprises, young workers under 35 years old can not find a few jobs, especially technicians and maintenance personnel.

    < /p >


    < p > in order to retain staff, some cotton textile enterprises began to substantially improve employee benefits.

    A business owner complained: "nowadays young people do not see how much they can do, but how much they can earn. The company is really cooperating their employees to work."

    Free training, five risks and one gold are basic treatment, improve welfare and reduce employee turnover.

    It is expected that employee salaries will go up this year, and workers' wages will go up like that. Cotton textile enterprises as a small profit can hardly afford to eat.

    < /p >


    < p > < strong > taxes and fees are numerous and enterprises are breathless. < /strong > /p >


    < p > China's < a href= "http://www.91se91.com/news/index_c.asp" > cotton spinning < /a > 17% of value-added tax, 25% of income tax, and land use tax, urban construction tax, property tax, stamp duty, local education fee addition, local water conservancy construction fund, disabled people's fund, environmental protection fee, trade union funds and so on.

    In addition to the same tax and fee items as other industrial enterprises, cotton textile enterprises also shoulder unreasonable taxes on "high taxes and low deduction" of cotton value-added tax.

    For example, soybeans belonging to agricultural products are processed into soybean oil, cotton is processed into textiles, soybeans and soybean oil belong to agricultural products, and their input and output taxes are 13%, while cotton processed textiles belong to industrial products, and the duty rate is 17%. Thus, cotton textile enterprises bear more than 4 percentage points of unreasonable tax.

    < /p >


    < p > in the past, cotton textile enterprises had lower energy and labor costs, and enterprises could bear the tax policy of "high tax and low deduction". But now the average profit of cotton textile industry is only 4%.

    The state should change this policy as soon as possible so as to achieve a fair competition and reduce taxes on enterprises, and also a fair competition environment for cotton textile enterprises.

    If the input tax and output tax of cotton can be kept at 13%, then the industry will add about 4000000000 yuan in profits. This is undoubtedly a good rain for the struggling textile industry.

    < /p >


    < p > enterprises are not strong enough to rely on subsidies. As a result of market competition, all kinds of pressures must be digested by their own pformation and development.

    However, such problems as bank financing, domestic and foreign cotton prices upside down, cotton input tax and output tax are not unified.

    As the two provinces of Anhui and Hebei put the lint and cotton yarn into the pilot deduction of the value-added tax input tax of agricultural products, the phenomenon of "high levy and low deduction" which has long been restricting the development of cotton textile enterprises has finally become somewhat loose. I believe that the spring of cotton textile enterprises will not be too far away as the policy of < a href= "http://www.91se91.com/news/index_q.asp" > /a > keeps adjusting to the favorable direction.

    < /p >

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