Xinjiang Cotton Direct Subsidy Rules Promulgated Favorable Cotton Spinning Industry

On the 17 day, the people's Government of the Xinjiang Uygur Autonomous Region announced the implementation plan of cotton target price reform. 60% of central subsidy funds will be subsidized by cotton planting area, 40% will be subsidized by actual sales volume, and temporary storage will be cancelled.

This means that the new year's cotton price will be formed by market supply and demand, which will help stabilize cotton prices, straighten out the entire cotton textile industry chain and lead the cotton textile industry to recover.

In April of this year, the national development and Reform Commission, the Ministry of Finance and the Ministry of agriculture jointly issued a document. According to the requirements of the Central Document No. 1 in 2014 and the deployment of the State Council, Xinjiang cotton was launched in 2014.

Price reform pilot.

Approved by the State Council, the target price of cotton in 2014 was 19800 yuan per ton.

According to this plan, since September this year, the state has implemented a pilot project of cotton target price reform in Xinjiang, while canceling temporary storage and storage of cotton.

Relevant experts said that since 2011, the state has implemented the cotton temporary purchase and storage policy for 3 consecutive years, which only guaranteed the interests of the three links of cotton farmers, ginning mills and cotton traders, and cotton prices remained high for a long time.

After the implementation of the cotton target price policy, the cotton price in the new year will be determined by market supply and demand.

Upstream cotton growers and ginning mills no longer have temporary support from the state. In order to sell, the ginning factory will give full consideration to the demand of textile enterprises, and production on demand will become a trend.

According to the reporter's investigation, at present, the cotton ginning factory has begun to link up with the spinning enterprises actively, investigate the market demand, and adjust the production and operation plan based on this.

"After the temporary storage and purchase in 2011, it has not been linked to textile companies for several years, and they are busy with the national savings." this year, the national storage has been cancelled, and our ginning factory has begun to contact the original textile enterprises customers.

Spinning enterprises now

The ability is obviously enhanced. "

A large cotton processing enterprise in Xinjiang said.

Relevant experts predict that after 2 to 3 years of adjustment, domestic and foreign cotton prices are expected to be reintegrated, and the problem of high cost of raw materials and relatively low quality of cotton is expected to change gradually.

In recent years, China's textile industry is expected to pick up gradually.

It is worth noting that

Xinjiang's development of the textile and garment industry is a strategic plan for the central government's work in Xinjiang in the new era. A series of supporting policies have been promulgated by the state and autonomous regions, of which Xinjiang has promulgated the outline of developing the textile and garment industry to promote employment planning (2014-2023 years).

Market participants say that the cotton spinning listed companies in Xinjiang will benefit from the upstream cotton target price subsidy policy and the downstream central support for developing the textile and garment industry in Xinjiang.