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    Price Difference At Home And Abroad 5000 Yuan / Ton Cotton Planting Area Reduced By 7%

    2014/3/31 20:09:00 14

    Price DifferenceCotton Planting AreaCotton Market

    According to the requirements of the Central Document No. 1, within the year Xinjiang Cotton target price subsidy pilot will start, but doubts about the specific measures of price subsidies will interfere with the choice of cotton farmers.


    According to the Ministry of agriculture survey data, cotton planting cotton planting area continued to decline, and cotton planting area is expected to decrease by 7% over the previous year. According to the survey data from the China Cotton Association, the average planting intention of cotton growers in the whole country decreased by 10.5%.


    "The concrete measures must be introduced before the spring sowing, and will not delay cotton farmers' growing cotton." A staff member of China Cotton Association has revealed that the subsidy policy for cotton planting outside Xinjiang is being intensified and will soon be promulgated.


       Cotton planting area continues to decline


    According to the Ministry of agriculture information, Huang Huai Hai area has reduced cotton production and area. According to the cotton association data, 27% of the surveyed cotton farmers were prepared to reduce their area. According to the weighted average of cotton planting intentions of the surveyed cotton farmers, the average planting intention of the cotton growers in China decreased by 10.5%. Based on the 2013 area of the association, it is estimated that the total area of cotton planting in 2014 will be 62 million 590 thousand mu. So far, the national cotton planting area has declined for 3 consecutive years.


    According to the analysis report of the technical system of cotton industry in China, the reason for the decrease of cotton planting area is that the detailed rules and other supporting measures for cotton target price subsidy have not been clearly defined. Some cotton farmers are still waiting and watching, and the overall planting intention has increased somewhat. The Department of agriculture attributed the decline in cotton planting area to cotton planting efficiency.


    China Cotton Association survey data show that 12 of the country's cotton planting area decreased in the province, Henan 23.2% reduction in the first place. In this regard, the Henan cotton association analysis shows that this year the state will start subsidized cotton target price for Xinjiang, but the support policy for cotton planting in other areas is not yet clear. In addition, the cotton purchase and storage policy will be abolished in the next year, and the purchase price will not be able to maintain the current high price.


    "The benefits of planting cotton are very low." Cotton growers in the Henan area told the daily economic news reporter that the production cycle of seed cotton is long, with large investment and large demand for manpower. cotton The total cost is nearly 2200 yuan, but gross income per mu is only 3000 yuan, and cotton growers are generally facing the trend of rising labor costs. The cotton grower said, "basically, every time we spend the Spring Festival, we have to raise the cost of hiring people." Cotton growers say that planting cotton is not as good as growing grain.


    In addition, in Lixian, Hunan, the cotton planting area of the local cotton growers has been reduced by 24.9%. The main reason is that the state will no longer receive the storage this year. Cotton prices will return to market dominance. At present, the domestic cotton price is higher than the international cotton price. The cost of cotton planting is higher and the cost of labor and time is much higher. In addition, in view of the cotton situation this year, the local government suggested that farmers should replant other cash crops such as corn, sorghum and wax gourd.


       at home and abroad Cotton price Upside down


    "At present, the price difference between domestic and foreign cotton is 5000 yuan / ton." Guotai Junan Futures Market Analyst Zhou Xiaoqiu said: "domestic prices are much higher than international prices. Domestic cotton spinning enterprises are not competitive in the international market. From a policy point of view, China wants to market the cotton prices step by step and integrate with the international market. In addition, the domestic cotton surplus is large and the inventory is high. In the future, the domestic consumption will be high, so the cotton price will increase slowly and the space will be narrow. "


    At present, the domestic cotton import quota management system, more than the quota of imported cotton will be charged 40% of tariffs, but under high tariffs, domestic and international cotton prices are still hanging upside down.


    At present, the average price of domestic lint at grade 4 is 17000 yuan per ton, and the average price of imported lint at the same grade after tax collection is still cheaper than 1000 yuan. Under such circumstances, the domestic cotton price of less than 1000 yuan per mu is still lacking competitive advantage with the international cotton price.


    In this regard, China Cotton Association believes that stable cotton planting area still needs policy support, such as launching Xinjiang cotton target price subsidy pilot, continuing seed subsidy and high-yield creation, etc., mainly attacking weak links in the production of machine picked cotton, increasing scientific cotton planting and promoting cotton production by science and technology, and actively building a socialized service system for cotton production.

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