"No Market" New Cotton Subsidy Policy

Mid October is the peak season for cotton purchase, but this year the situation is different.

"Now cotton mills in Xiajin do not buy cotton, even if they have received it before, and now they are suspended."

11, Henry, director of Xiajin Cotton Industry Co., Ltd., Yu Fengjun, revealed to the Economic Herald reporter.

The difference between cotton market this year and previous years is that the implementation of the temporary collection and storage system for many years ended and replaced by the "target price system".

The withdrawal of the purchase and storage system has allowed cotton prices to return to the market, but many market players have been caught unprepared.

"After the withdrawal of the storage system, there is no price vane, and we dare not accept it."

Yu Fengjun said.

Cotton growers complain that cotton is "cheap and expensive."

Information opaque and lags are also hurting the market.

The target price system has already made clear the subsidy method to Xinjiang cotton area. Shandong cotton area has picked about 70%, but up to now, how to subsidize the cotton area in the mainland is still not clear, which also makes many cotton farmers feel at sea.

Cotton factory stop

As an important cotton growing area in Shandong Province, Xiajin county should be a busy season at that time: cotton farmers sell cotton to cotton processing plants after harvesting cotton, and sell them to textile mills or national repositories after processing.

But now, the cotton factories here are quiet.

Located in the double Temple Township of Xiajin County cotton mill, several cotton factories are located side by side in the north of the 308 National Road.

On the 11 day, the doors of all cotton factories were empty, and some cotton factories even locked the gates.

In Xiajin county hair cotton Co., Ltd., the factory area is quiet, there is no sign of starting.

"In the past years, cotton was started after September 10th, but this year has not yet started.

Some cotton factories tried to collect some money before, but they lost money. Now they have stopped.

The factory has not yet started to buy. "

Hou Faxiang, director of the leading cotton industry, said.

Yu Fengjun's Henry cotton industry is one of the cotton mills that has started to buy.

"We have received dozens of tons, and the price of seed cotton is about 3.5 yuan / kg, which is equivalent to 15 thousand yuan / ton of lint price, but the price we sell to the textile mill is about 14 thousand yuan / ton, and it has not made money and lost money, so it has suspended the purchase."

Yu Fengjun said.

The reason for everyone's wait-and-see, Feng Jun analysis, said: "before the acquisition of cotton price is very simple, the purchase price of state cotton is fixed, as long as we can maintain a small profit can start.

But now there is no fixed price, so we are more cautious.

Obviously, after the end of the cotton purchase and storage system, the market participants need to adapt to the new cotton operation mechanism for some time.

Besides, the house is leaking away for rainy nights.

After the end, foreign cotton prices continued to fall.

"This also makes everyone dare not accept, after the price is down, it will lose money."

Yu Fengjun said.

Cotton growers complain

On the afternoon of 11, in the East duck village of Shuang Miao Township, cotton farmer Dai Ping was picking cotton in the field.

"We planted 6 mu of cotton in our village, which is much more planted in the village.

The weather is good this year. Cotton grows better than before. It can pick more than 500 catties per mu.

Dai Ping said.

But the increase in output did not make her happy: "cotton prices are too low this year, 4.3 yuan per catty in the past year, this year dropped to 3 yuan per catty, and some people say that the unit price will be below 3 yuan."

Even more puzzled by her is that no one has been collecting cotton this year: "no one wants to be expensive, cotton picking is almost over, and no one has seen it yet."

The decline in prices has made cotton farmers lose their profits.

"If you want to drop more than 3 yuan per catty, though it will not lose money, it will be much less profitable than wheat and corn, and it will be time-consuming and expensive to plant cotton, so it is better to go out to work."

Dai Ping said.

Because of the inefficiency, the local cotton area is shrinking rapidly.

As a large cotton growing village, fan Lou village, a double temple village, has been known for a long time, but now the cotton planting is no longer there.

"Before the whole village is cotton, and now half of the cotton, have been converted to corn and wheat."

Fan Yudong, Secretary of the Party branch of the village, said: "it is now the season for planting wheat. Many villagers will replant wheat, and the area of cotton planted next year will continue to decline."

Wang Anjun, Secretary General of Xiajin Cotton Association, introduced that as a traditional cotton planting County, the cotton planting area in Xiajin county was once more than 650 thousand mu, but it declined in recent years.

Especially since 2009, the cotton planting area in this county has been reduced from 602 thousand mu to 320 thousand mu.

"Cotton planting area has to drop this year."

Wang Anjun said.

Information lag

Many cotton farmers are puzzled about the sharp fall in cotton prices this year.

"How did it happen so quickly?" Dai Ping asked the guide reporter.

In fact, since the beginning of the year when the state announced the termination of the system, it is destined that cotton prices will fall sharply this year.

Because, at that time, the price of the state's collection and storage was as high as 19 thousand and 800 yuan / ton, while the international CIF price was only about 14 thousand yuan / ton; moreover, the price of cotton sold to the market by the national cotton store was 18 thousand yuan / ton, far lower than its purchase price, and the total cotton reserves of the national cotton store reached 10 million tons, which was faced with the enormous pressure of de stocking.

In this case, when the state announces no longer the implementation of the system, it means that cotton prices will drop sharply this year.

Why do so many cotton growers grow cotton? Is it because they do not know that the country will no longer buy and store it?

"Most cotton farmers know that.

But on the one hand, cotton planting is traditional, like the long term cotton planting in our history in Xiajin.

On the other hand, everyone is lucky.

Cotton prices have not been high in recent years, and we hope that prices will go up. "

Wang Anjun said.

In the interview with the reporters, some cotton growers did not know the end of the system, even though most of them knew little about it.

Dai Ping told the reporter, "what do you mean by those who do not buy or sell, we do not know."

The reporter noted that no matter how much information the country had no longer had to purchase and store, which had great impact on cotton growers, although there were sporadic reports and warnings by the media, there was no direct and effective communication between the relevant agencies and cotton farmers, or even a lack of means of communication.

Another manifestation of opaque information and lagging behind is that until now, cotton farmers in the mainland still do not know whether the state has subsidies or subsidies to them after the end of the system.

After the end of the purchase and storage system, the target price is prepared and replaced.

The relevant departments will set a target price. If the market price is lower than the target price, the government will subsidize the difference, which ensures the cotton farmers' interests will not be lost.

The target price determined this year is the storage price of last year, that is, 19 thousand and 800 yuan / ton.

However, the scope of implementation of the policy is limited to cotton growing areas in Xinjiang.

In September 22nd, the national development and Reform Commission (NDRC) held a press conference on "cotton target price reform pilot and market regulation". In addition to the implementation of the target price system in the Xinjiang cotton area, the State Development and Reform Commission will also subsidize the mainland cotton areas such as the Yangtze River and the the Yellow River River Basin. The State Council has stated that the State Council has already decided how to make up and supplement how much will be issued by the Ministry of finance.

But today, cotton farmers' cotton picking is coming to an end, and the subsidy policy for cotton farmers in the mainland is still not available.

"We are also asking about the subsidy of mainland cotton farmers, but there is no definite news."

Wang Anjun told reporters.