Development And Reform Commission: Cotton Prices Will Be More Determined By The Market.

On the morning of 25,

The eight departments of the Ministry of Finance and the Ministry of agriculture jointly held the national teleconference on cotton work, analyzed the cotton production and marketing situation in the new year, and explicitly abolished the policy of temporarily collecting and storing the whole country, so that the price of new cotton was mainly formed by the market.

The meeting held that cotton in 2014

Facing the new situation.

One is the start of the state at the beginning of this year.

The target price reform experiment has made significant changes in the operation environment of the cotton market. At the same time, the temporary purchase and storage policy has been abolished nationwide, so that the new cotton price is mainly formed by the market, and the new system of cotton purchase and sale is gradually constructed to give full play to the role of the market mechanism and better play the role of the government.

Two, domestic demand for cotton will be restored, and supply and demand will change significantly.

Cotton production is expected to decline in the new year and demand for textile cotton will grow steadily.

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China's national development and Reform Commission put forward in Beijing on 25 th, in 2015, it did not issue cotton import quotas in principle, so as to guide domestic textile enterprises to use more domestic cotton, and suspend the release of cotton reserves, and guide enterprises to purchase, process and sell new cotton.

Lian Weiliang, deputy director of the national development and Reform Commission, made arrangements for the purchase and sale of cotton in the 2014 cotton year (September 2014 to August 2015) at the national cotton working teleconference.

Lian Weiliang said that in 2015, cotton imports will be properly arranged according to China's domestic supply and demand situation. In addition to the 894 thousand ton tariff quota promised by WTO, the import quota will not be increased in principle, so as to guide domestic textile enterprises to use more domestic cotton.

Since 2011, China has carried out temporary storage and storage of cotton and "sold the whole" cotton prices, but resulted in domestic cotton prices substantially higher than international prices.

To this end, Chinese officials launched a pilot project on cotton target price reform in Xinjiang at the beginning of this year, and cancelled the temporary purchase and storage nationwide. The price of new cotton will be formed by the market.

Chinese officials predict that China's cotton production will decline in the new year, while demand for textile cotton will pick up and the gap between production and demand will be widened.

In this regard, Lian Wei Liang pointed out that "as long as we properly handle the relationship between new cotton sales, reserve delivery and import arrangements, the relationship between market price formation and government regulation can guide market cotton prices to run in a reasonable range and maintain the balance of domestic cotton supply and demand".

Specifically, the meeting called on all localities to explore the establishment of a market-based cotton purchase and sale system, strengthen the supervision of cotton market and quality, coordinate financial institutions to guarantee the supply of cotton purchasing funds, reduce logistics costs, raise the level of cotton yield per unit area, and do a good job in market guidance and regulation.