The Negative Effect Of Cotton Purchasing And Storage Policy Is Beginning To Show.

P, the head of a private textile factory closed at the end of last year, said that the quota system corruption caused by the cotton purchase and storage system had made the small and medium-sized textile enterprises suffer.

This year, the state carries out a pilot project of target price subsidies for cotton in Xinjiang, which is absolutely good news for textile enterprises.

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< p > it is understood that after the introduction of the cotton purchase and storage policy, a large number of import quotas circulated on the market in 2012, and the price was higher and higher, and the highest price was 3800 yuan per ton.

Wang Yong, a cotton researcher at Hongyuan futures, said that some enterprises applying for quotas did not have substantive cotton spinning production and trade. They did not need to import cotton, but only after they got the quota, they sold it back and sold it at a high price.

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< p > in addition, some enterprises falsely report the volume of production trade, apply for cotton import quotas higher than their own capacity requirements, and then sell surplus quotas.

The departments concerned have promulgated a series of systems and strictly restricted the qualification of enterprises that can apply for import quotas, that is, only state-owned enterprises can apply for import quotas.

It is precisely because of this regulation that many private textile enterprises are more difficult to manage.

"In the final analysis, the problem of quota system is derived from the policy of purchasing and storing up."

Wang Yong said frankly.

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< p > up to February 14, 2014, according to the sliding tax, the difference between the inside and outside cotton price is as high as 3603 yuan / ton, if the tariff is added to 1%, the difference will be as high as 4689 yuan / ton.

Yang Guodong, leader of Hongli textile limited, told reporters that the price of cotton yarn abroad is only equivalent to the price of raw cotton in China.

In such an unequal competitive situation, foreign cotton yarn poured into the domestic market, causing domestic cotton spinning enterprises to fall into the whole industry deficit.

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< p > Yang Guodong said that the implementation of cotton < a href= "http://www.91se91.com/news/index_c.asp" > storage and purchase policy < /a > has played an important role in protecting the interests of cotton farmers in recent years.

But for the healthy development of the whole cotton industry, especially cotton spinning enterprises, there are limitations.

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< p > the target price subsidies for cotton in Xinjiang this year will take into account the overall interests of the whole industry. While stabilizing cotton farmers' income, they can reduce the cost of raw materials for cotton spinning enterprises and reduce the pressure of import shocks caused by the long-term "upside down" of cotton prices at home and abroad.

The implementation of the new policy means that domestic cotton prices will be in line with foreign countries in the future, and cotton prices will remain the same internationally. At the same time, it means that domestic cotton spinning enterprises can stand on the same starting line with foreign cotton spinning enterprises.

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< p > in order to stabilize cotton prices and protect the interests of cotton farmers, the policy of purchasing and storing the stock has reached a point of no change.

Last year, the cotton Working Committee, set up by the China Federation of textile industry, put forward a policy proposal for cotton farmers' direct subsidy to the State Council after careful investigation in major cotton producing areas in China.

It is suggested that a cotton subsidy of 100 yuan to 120 yuan per mu of cotton should be subsidized in Xinjiang.

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< p > "carrying out target price subsidy policy for" a href= "http://www.91se91.com/news/index_c.asp" > Xinjiang < /a > cotton has not only played a decisive role in the formation of market mechanism in the price of agricultural products, but also made clear the responsibility of the government for agricultural and rural development.

In March 11th, Zhang Mingqing, deputy secretary of the Hutubi county Party committee, said.

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< p > he believes that after the temporary cotton purchase and storage policy in the past was changed to the target price subsidy policy to strengthen the market function, the government would directly grant subsidies instead of "supporting the market". This not only protects the interests of farmers, but also helps cotton textile enterprises get out of the predicament, which is more conducive to the rational allocation of market resources, and will eventually play a positive role in the healthy and sustainable development of the cotton industry.

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< p > < a > href= > http://www.91se91.com/news/index_c.asp > > Wang Yong < /a > think that in 2014 as "the year of change", there may be three changes in the cotton Market: first, the weakening of the state's regulation and control of the cotton market and the full return of the price; two, the examination and approval authority of cotton processing qualification will also change, and it will not be completely liberalized; three, the cotton quota management method will be more flexible.

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< p > purchase and storage will become a direct subsidy or will become an important reform measure to restore cotton price formation mechanism.

However, the so-called "direct subsidy" is not just a simple sentence. How to balance the interests of cotton farmers and ensure that the market mechanism is not destroyed? There are still some problems to be solved.

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< p > on the one hand, the subsidy price is hard to decide.

If the price of cotton subsidy is too high or the planting area will be affected, the low price will result in insufficient cotton planting willingness, because the degree of domestic cotton planting mechanization is far lower than that of grain cultivation, and the cost is obviously higher than that of planting grain.

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< p > on the other hand, the target of subsidy is hard to decide.

Gao Fang, executive vice president of the China Cotton Association, believes that it is impossible for China to copy the American cotton farmers' direct subsidy mode. Only 20 thousand cotton farmers in the United States are well positioned, while 40 million cotton farmers in China have to ensure that the direct subsidy policy is implemented at low cost and that the funds are delivered accurately.

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