New Cotton Season New Rules Cotton Price Decide

Here world Clothing and shoes Xiaobian of the network introduced to everyone is the new cotton season pilot new rules cotton price formation is determined by the market.

In a few days, the domestic cotton market will officially enter the 2014~2015 year, and the implementation rules for the new year's cotton target price subsidy pilot in Xinjiang will be introduced soon.

What is the mechanism of the more market-oriented agricultural price formation mechanism?

Recently, the vice premier of the State Council, Wang Yang, went to Xinjiang to carry out the pilot project of cotton target price reform. He pointed out that carrying out the pilot project of cotton target price reform can help explore and improve the price formation mechanism of agricultural products, better play the role of market allocation of resources, and make full estimation and adequate preparation for the problems that may arise in the pilot process.

According to the Ministry of agriculture, the method of production cost plus basic income is adopted in the pilot stage. Target price Level. The target price only ensures that farmers get basic income instead of all proceeds. When the market price falls, farmers also have to bear some risk of falling profits.

Li Guoxiang, a researcher at the Institute of rural development of the Chinese Academy of Social Sciences (micro-blog), told reporters in the daily economic news that the purpose of carrying out the reform of cotton target price reform is to give full play to the decisive role of the market in the allocation of resources under the premise of protecting the interests of farmers, and to decide the price formation to the market.

Cotton prices at home and abroad upside down storage pressure

The cotton temporary purchase and storage system, which began in 2011, was officially abolished this year. According to the reporter's understanding, since the implementation of the cotton temporary purchase and storage policy, the international cotton price has been falling continuously for 3 years, and the difference between domestic and foreign cotton prices has been increasing. Two international and domestic markets are running double track system.

Since the beginning of this year, the price difference between the inside and outside per ton of cotton has reached a maximum of 6500 yuan, reaching a record high.

After the purchase and storage of cotton in 2013~2014, 11 million tons of cotton entered the national storage cotton warehouse. With the huge amount of stock in the state reserve cotton being difficult to digest, a difficult link has formed: the domestic and foreign cotton prices are upside down, leading to the high cost of textile enterprises, the reduction of competitiveness and the loss of orders.

As a result, the related financial pressure and market pressure based on cotton temporary purchase and storage policy are gradually emerging.

"The high price of cotton at home and abroad remains high, reducing the competitiveness of Chinese textile enterprises in Global trade. Under the background of structural adjustment and industrial upgrading, the blow to Chinese textile enterprises is undoubtedly exacerbating." A textile industry believes that the purpose of China's acquisition and storage of cotton is mainly to protect the interests of cotton farmers while ensuring market supply, but when the policy of purchasing and storing up to third years is already difficult.

"Because domestic cotton prices are substantially higher than the cost of imports, market participants are reluctant to enter the market, and the pressure on State purchasing and storage has increased dramatically. The relationship between upstream and downstream prices has been distorted, and market vitality has weakened, which has adverse effects on the entire industrial chain." Li Guoxiang said that the prerequisite for effective implementation of the temporary cotton purchase and storage policy is that the domestic market price is lower than the international market price. But in the past two years, on the one hand, the price of cotton in the international market has dropped substantially; on the other hand, domestic cotton prices have been operating at a high level supported by the temporary purchasing and storage policy, and domestic prices have shifted from the international market to the cost of imports. The temporary storage and purchase policy is therefore difficult to continue.

Cotton farmers should also share market risks.

Wu Xinnan, deputy inspector of the development and Reform Commission of the Xinjiang Construction Corps, formulated the rules for the implementation of the rules, and said that the government should not interfere in the market price, and the government would not intervene in the market price. The acquisition of the market price would help restore the vitality of the domestic industry and enhance the market competitiveness of domestic agricultural products. The subsidy method of the government should be changed from the "covert subsidy" contained in the price to the "direct subsidy" of direct payment, so that the producers could get the government subsidies in a clear way, which would help to reduce the intermediate links and improve the efficiency of subsidies. At the same time, it is also conducive to improving the organization and scale of agricultural production, improving labor productivity, encouraging agricultural technological progress, controlling production costs and improving product quality.

"The pilot project of cotton target price reform can help explore and improve the price formation mechanism of agricultural products and better play the role of market allocation of resources." Wang Yang, who visited farmers, cotton storage and textile enterprises in Xinjiang, stressed that the next step would be to increase spanparency in cotton imports and cotton reserves so as to stabilize market expectations.

"There must be risks in market activities. Cotton growers are the main body of the market economy. While gaining profits through the market, they must also bear the risk of market fluctuations." Li Guoxiang said, because the state is subsidized according to the average price of cotton in the Xinjiang market, instead of subsidizing the price according to the actual selling price of a single farmer. Therefore, if the quality of cotton produced by cotton growers is superior and the selling price is higher than the average price, the total income of cotton growers will naturally be more, and vice versa. In most industries, market risks are all borne by the market players. However, considering the particularity of cotton production, the state will implement the target price. policy While sharing risks with farmers, it promotes the healthy development of the whole cotton industry.