Marketization Of Cotton Prices Is Beneficial To Leading Enterprises

Here in the world Clothing shoes and hats The small knitting of the web introduces clothing and textile: the marketization of cotton prices benefits leading enterprises.

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On September 17, the People's Government of Xinjiang Uygur Autonomous Region announced the implementation plan for the pilot reform of cotton target price. From now on, the government's guiding price of cotton in Xinjiang will be abolished. The cotton price will be dominated by the market. The government will grant subsidies to farmers directly. 60% of the central subsidy fund will be subsidized according to the actual cotton planting area, and 40% will be subsidized according to the actual sales volume, At the same time, cancel temporary collection.

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　　 cotton The pilot scheme is basically consistent with previous expectations. The base price has not yet been announced. According to the implementation scheme of the pilot reform of cotton target price announced this time, the cotton price in Xinjiang will be determined by the market supply and demand. The government will not interfere in the market price, and the cotton target price policy will also protect the interests of cotton farmers through direct subsidies, When the average market price during the price collection period is lower than the target price (the target price of Xinjiang cotton in 2014 is 19800 yuan/ton), subsidies will be given in the form of combining the actual cotton planting area with the actual sales volume, of which the subsidy for planting area accounts for 60% of the central subsidy fund and the sales volume accounts for 40%.

The reform pilot implementation plan announced this time is basically consistent with previous expectations, market The biggest concern is still the future trend of cotton prices. Due to the climate of this year, the new cotton in Xinjiang in 2014/2015 will be listed one month later than that in previous years. It is expected to be centrally listed in October. Considering that the national reserve cotton has stopped in August, the "blank period" in September supply will form a certain support for cotton prices in the short term. With the implementation of the direct subsidy policy, cotton has gradually entered the stage of market-oriented operation. After the new cotton is listed, the cotton price will still decline. However, when the decline is too large, the government will still maintain the stability of cotton price through "bottom support". Although the "bottom support" price has not been announced in this plan, but considering the restrictions of subsidy funds, We expect that the "bottom" price will be in the range of 15000~16000 yuan/ton, and the cotton price will reach a low point in the first half of next year.