Cotton Prices Waits For Cotton Price Reform: I Don'T Know How To Distribute Subsidies.

In September 22nd, the head of the national development and Reform Commission said in a press conference on "cotton target price reform pilot and market regulation", the NDRC will suspend the release of cotton reserves and implement the target price reform.

　　 it is reported With the approval of the State Council, the NDRC approved the implementation plan for the pilot project of cotton target price reform in the Xinjiang Uygur Autonomous Region and Xinjiang production and Construction Corps last week, marking the implementation of the target cotton price reform that has been brewing for a long time.

Regarding the introduction of this policy, people from relevant departments of cotton enterprises told the Securities Daily reporters that they did not know how to distribute subsidies in the end. There were no specific measures to come down, and there was no way to predict the future.

Reform to deal with cotton price difference at home and abroad

In fact, due to the high price difference between domestic and foreign cotton prices, domestic cotton enterprises have been scrambled for foreign cotton quotas, hoping to buy cheap cotton imported from abroad, while domestic cotton prices are high because of higher production costs, and cotton farmers have to switch to other crops for survival.

"At present, domestic cotton prices are above 18000 yuan / ton, while the price of imported cotton is only about 13000 yuan / ton, the difference is so great, and the company mainly exports, and the cost of cotton price difference leads to the decline of the competitiveness of enterprises in the world." A textile and garment industry listed company official told reporters that before the company can get quotas to buy imported cotton, but now even quotas are not available.

Above Personage Complained to reporters, "the quality of cotton purchased by the company is not very good, and some cotton is hoarded for several years."

In fact, a number of cotton enterprises have complained to reporters. Because of the large difference between domestic and foreign cotton, the cost of enterprises is too high, and the price of products is not competitive. And this has led to many cotton enterprises began to compete for a small number of foreign cotton import quotas. It is against this background that the country started the pilot and market regulation of cotton target price reform.

Liu Xiaonan, deputy director of the economic and Trade Department of the NDRC, said that after the implementation of the target price, the linkage between the domestic and foreign cotton market will be enhanced, and the difference between domestic and foreign markets will be reduced to a reasonable level. This will have certain advantages to improve the competitiveness of textile enterprises, especially export oriented textile enterprises, so that they can be placed in a relatively fair and reasonable competition environment.

Yes report Said that from September 1st this year, the Xinjiang cotton market price monitoring work has officially started. The target price of lint cotton in Xinjiang is a one year system. The target price of lint in 2014 is 19800 yuan / ton, and the total price of seed cotton is about 4.4 yuan per catty. At present, the actual price of seed cotton is initially priced at about 3.3 yuan per catty. According to this, the difference of 1 yuan per catty cotton seed will be subsidized by the state.

Direct subsidy to cotton growers

It is understood that if the departments concerned will adopt the cotton target price system, they will abolish the temporary storage and purchase system in the past and make direct subsidies to cotton farmers.

Zhou Wangjun, deputy director of the price department of the national development and Reform Commission, pointed out that the target price plays a guiding role, that is, when the output is high, the target price guides farmers to grow less. When the production is declining, the target price can guide farmers to have more kinds. This is the goal we want to achieve.

However, whether the cotton price reform can make the domestic market price close to the national cotton price is still unknown. People with relevant departments of cotton enterprises told reporters that they do not know how to subsidize, nor how much they can subsidize, and whether domestic cotton prices can be kept in line with international cotton prices.

Compared with cotton enterprises' wait-and-see and worry about the implementation of cotton target price reform, subsidized cotton farmers are more concerned about how much subsidies they will receive and whether they will lose money.

A local cotton grower in Xinjiang said in a media interview that due to the influence of the strong wind on cotton production this year, we expect to harvest about 37 thousand tons of cotton. He counted the accounts, and according to the target price subsidy policy implemented by the state, the price of synthetic seed cotton was 19800 yuan / ton, about 8.8 yuan per kilogram to calculate. He planted 120 mu of cotton without losing money. "If I am subsidized by mu, I will not lose money this year, but if I subsidize production, my income will be much less. What I am most concerned about now is the purchase price of cotton.

Since the pilot of cotton target price has just started, there is no way to determine the subsidy. In this regard, Zhou Wangjun said that the actual price should be calculated according to the average price of the three months in September, October and November. The gap between the target price and the actual price is the amount we should grant to farmers.

Zhou Wangjun, for example, said, "the most fundamental thing is that the price of cotton should be determined by the market. In the process, we set a target price according to the farmers' planting cost plus basic income. According to this principle, the target price of cotton in Xinjiang this year is 19800 yuan per ton. Now the domestic cotton price is 14000 yuan per ton, the difference between the two is 5800 yuan / ton, that is the amount we should subsidize to farmers this year.

"In addition to the pilot area in Xinjiang, there are also the main producing areas of the Yangtze River and the the Yellow River River Basin, and the state will grant subsidies appropriately. Now this principle has been decided by the State Council, how to make up and how much to be supplementation will be issued by the Ministry of finance." Zhou Wangjun said.

Unlike cotton farmers' concerns about subsidies, those who buy cotton are buying cotton at market prices.

"Our enterprises buy according to market conditions, and how much the market is talking about." The relevant person in charge of a local enterprise in Xinjiang told the media that the current market quotation is 6 yuan / kg to 8 yuan / kg, but the specific price will come out in October 10th.

It is understood that, due to the pilot cotton price target reform in Xinjiang this year, the State Cotton store stopped selling, and some textile enterprises with order production tasks are now eager to use cotton.