"Xinjiang Cotton Target Price Reform Pilot Project Implementation Plan" Landing

The people's Government of the Xinjiang Uygur Autonomous Region recently announced that the implementation plan of Xinjiang cotton target price reform pilot plan approved by the State Council was officially issued by the national development and Reform Commission and the Ministry of Finance in September 16th.

After the two trading days, the Zhengzhou Mercantile Exchange Zheng cotton 1501 contract first rose and then fell, the cumulative decline was 1.06%, showing a blank, and yesterday received 13520 yuan / ton.

"More importantly, the direct subsidy policy did not point out that this is the bottom line policy, but let the cotton farmers follow suit, so the cotton price drop will be logical."

Fu Xiaoyan, an analyst at Nanhua Futures Co., Ltd.

In the cotton industry chain, upstream

The midstream processors and downstream textile factories are affected differently.

Hualian futures researcher Ding Yongxin pointed out that the rules protect the interests of cotton farmers better, so that price risk is mainly pmitted to the middle and lower reaches, and the risk faced by cotton growers is small.

For midstream enterprises such as processing and circulation, the business environment will undergo significant changes. Business ideas need to be properly adjusted to cope with the test of the cotton market. A group of enterprises that are truly competitive will stand out.

For the downstream cotton textile enterprises, the new policy helps to reduce the production costs of enterprises, enhance their competitiveness in the international market, and is conducive to the development of the whole industry.

At present, direct subsidy

Mainly aimed at

。

In the long run, is the policy likely to be extended to other cotton producing areas?

In this regard, market participants generally believe that the implementation of the policy should take into account the cost of execution.

The cotton planting area is extensive in China. If the current rules are to be popularized nationwide, the cost of execution may be higher.

In the future, we can adjust measures to local conditions and implement experience and effect according to the current rules, and explore the national direct subsidy scheme.

"

Before implementation, the cotton planting area in Xinjiang has been thoroughly explored. The situation in Xinjiang is very special. The direct subsidy policy needs large-scale planting, which will play a good role. The scattered planting in the cotton fields in the mainland will be difficult to make statistics. Therefore, even if the cotton patch in the mainland is to be supplementing, it should be different from that in Xinjiang.

Fu Xiaoyan said.