NDRC Detailed Cotton New Deal, Domestic Cotton Market Goes To Inventory Period.

The national development and Reform Commission specially convened a news conference on "cotton target price reform pilot and market regulation", disclosing some important information. For example, according to the previous policy, the subsidy scope of cotton target price reform is limited to Xinjiang. This conference will also provide subsidies to the production areas of the Yangtze River and the Yellow River basin. The state will issue only 894 thousand tons of tariff import quotas next year, and no more cotton import quotas will be added.

"The purpose of further tightening imports is to digest domestic cotton stocks. However, there is still a gap between domestic and foreign cotton prices, and the quality of domestic cotton, especially cotton stored for a long time, is not satisfactory. If we restrict imports, it will aggravate the difficulties of domestic textile enterprises. " 23, Xia Zhilin, President of Shandong Textile Industry Association.

　　 Cotton prices drop

At the beginning of this year, the national development and Reform Commission officially launched the pilot project of target price reform for cotton and soybeans, and determined that the target price of cotton this year will be 19800 yuan per ton.

Before the implementation of the cotton target price reform, domestic cotton should be temporarily collected and stored. Because of the high cost of purchasing and storage, the price gap between domestic and foreign cotton is huge, and domestic textile enterprises complain incessantly.

Liu Xiaonan, deputy director of the national development and Reform Commission, explained at a press conference that the implementation of the target price reform is to take into consideration the interests of textile enterprises. "After the target price reform is carried out, the price of cotton will be formed by the supply and demand of the market. According to the demand, the textile enterprises will purchase cotton according to the judgement of the market trend. After carrying out this target price reform, the linkage between domestic and foreign cotton market will be strengthened, and the price difference between domestic and foreign countries should be reduced to a reasonable level.

Today, the goal of narrowing the price difference between home and abroad is a preliminary achievement.

Since the reform and Development Commission announced the reform of cotton target price, domestic cotton prices have entered a long-term downward channel. At present, the spot price of Xinjiang cotton is about 14000 yuan / ton, far lower than last year's 18000 yuan / ton. In the futures market, the price of cotton main contract 1501 of Zhengzhou merchants reached 16900 yuan / ton at the beginning of this year. At present, it is only 12900 yuan / ton, with a decrease of 24%.

　　 Subsidy scope Will expand

stay cotton At the beginning of the target price reform, the scope of its announcement was confined to the Xinjiang producing area, which meant that cotton farmers in other areas including Shandong were not in the scope of subsidies. However, according to the information disclosed at this news conference, cotton farmers in Shandong will also receive subsidies.

Zhou Wangjun, deputy director of the price department of the national development and Reform Commission, said: "besides the pilot areas in Xinjiang, there are also the main producing areas of the Yangtze River and the Yellow River River Basin, and the state will grant subsidies appropriately. Now the principle of the State Council has been fixed, and how to make up and supplement will be issued by the Ministry of finance.

"A plan has been discussed before, that is, the main production areas in the mainland are not directly subsidized to cotton farmers, but are subsidized to local governments, and then subsidized by local governments to cotton growers and cotton seed cooperatives. And the amount of subsidy will be less than Xinjiang. " A person familiar with the matter.

Ma Junkai, Deputy Secretary General of the Dezhou Cotton Association, analyzed the reasons for the different subsidies for cotton farmers in Xinjiang and the mainland. The main reason is that there are too many small retail farmers in the mainland and 35 mu per plant. In terms of policy orientation, the state is encouraging large-scale cotton planting, and the benefit of small retail households is very poor.

　　 Imported Plunge

According to the terms of agreement in China's accession to the world trade organization, China implements quota management system for cotton imports. Import quotas can be divided into two categories, one is tariff quotas and the other is quotas outside tariffs. The total tariff quota is 894 thousand tons, the tax rate is 1%, the tariff quota quota system is implemented, the lower the import price is, the higher the tariff is.

Due to the high domestic cotton prices in recent years, the demand for foreign cotton in textile enterprises is large, and the quantity of cotton imports in China is huge. According to the information released by the Chinese customs, from September 2013 to August 2014, China imported 3 million 1 thousand and 300 tons of cotton, a decrease of 1 million 392 thousand and 400 tons compared with the same period last year. In the first 8 months of this year, China imported 1 million 878 thousand and 200 tons of cotton, down 1 million 147 thousand tons compared with the same period last year.

Ma Junkai analysis said that only 894 thousand tons of tariff quotas were imported to digest inventory. After years of storage, national cotton reserves already have the world's largest cotton reserves. "At present, the storage capacity of national cotton reserves exceeds 10 million tons, and the inventory pressure is very large. Restricting imports can make domestic textile enterprises use more domestic cotton."

But Xia Zhilin expressed great concern about restricting cotton imports: "at present, the price of foreign cotton is only about 11000 yuan / ton, and the domestic cotton price is still very high. Moreover, the quality of domestic cotton is low. The cotton stored by the State Cotton in successive years, its stock of cotton is 1 years ago, 2 years ago, or even 3 years ago, the quality of cotton is greatly reduced, it is difficult to meet the needs of domestic textile mills. After tightening imports, domestic textile enterprises will be more difficult.