2014 Cotton Policy Changes

Q: cotton purchase in our province is about to start. What is the change of cotton purchase policy this year?

In order to meet the needs of the market economy and exert the market adjustment mechanism, according to the requirements of the Central Document No. 1, the State Council approved the 2014 cotton annual state to cancel the cotton storage policy for three consecutive years, and implement the pilot project of cotton target price reform in Xinjiang, and completely liberate the cotton market in the mainland.

This year, the cotton market in our province has been completely liberalized, and the price of new cotton is entirely determined by the market.

Q: what is target price subsidy? What are the target areas of Cotton Subsidy this year?

Zhou Guijuan: the so-called target price of cotton, namely: the producer sells cotton at the market price, when the market price is lower than the target price, the state gives subsidies to the producers according to the difference between the target price and the market price, and the planting area, production or sales, etc. when the market price is higher than the target price, the state does not grant subsidies.

Different from the price policy of Pro reserve policy, the target price policy is directly subsidized by farmers in the way of price separation.

Q:

How about cotton production in the region? What is the expected purchase price?

Q: according to the survey, the planting area of the main cotton producing areas in Yancheng and Nantong has been reduced by more than 20% compared with that of last year. In addition, there were more pests and diseases such as bug bugs and Bemisia tabaci, and the total yield and total amount of cotton decreased significantly.

However, due to the oversupply of cotton throughout the country, domestic and foreign futures prices are far below the current market price, and cotton prices will continue to fall. The general price of seed cotton purchase is generally estimated at 3.1 to 3.5 yuan / Jin.

Jiangsu Finance: this year, the new cotton prices in our province are much lower than in previous years. How to protect the interests of cotton farmers?

Q: after marketization, the price of cotton is entirely determined by the market.

According to the current cotton market, cotton prices will continue to decline, and the majority of cotton farmers should have psychological expectations.

This year is the first year of the implementation of target price subsidies. As one of the main cotton producing areas, Jiangsu has been actively striving for a quota subsidy for several cotton producing provinces in the mainland. The specific policies need to be promulgated.

Q: the cotton purchase market in our province is completely liberalized. How can cotton growers sell cotton?

Zhou Guijuan: the State implements cotton target price subsidy in Xinjiang, and adjusts the purchase and sale of cotton in the mainland from temporary storage to full liberalization. The implementation of this policy is to promote the adjustment of the planting structure in the mainland and promote the healthy and sustainable development of China's cotton industry.

After the cotton purchase market is liberalized, the buyout enterprises will carry out the purchase according to the market price, and the cotton farmers can sell them to the local cotton purchasing enterprises.

Q:

How can a takeover firm determine the purchase price?

Zhou Guijuan: after the cotton market has been completely liberalized, there is no policy backing for temporary storage and so on. Enterprises should not only consider how to collect, but also consider how to sell.

The purchasing price of enterprises is mainly determined according to the quality of cotton, referring to the domestic and foreign cotton futures prices, and the acceptable prices of the downstream textile industry.

At the same time, according to the enterprise's own risk bearing capacity, production and operation level, as well as the sales order, and so on, the order will be ordered and ordered.

Q: what are the basic requirements of the Agricultural Development Bank's management of cotton purchase loans?

Zhou Guijuan: closed management is the core and foundation of the credit management of the Agricultural Development Bank's purchase and sale business. It is also an important guarantee for the effective development of the credit business of the agricultural development bank.

This year, our bank continues to insist on closed management of cotton purchase loans, closely monitoring the source of the first repayment of enterprises, so as to effectively control and control credit risks.

Q: what are the conditions for applying for the cotton purchase loan of the agricultural development bank?

Zhou Guijuan: according to the cotton loan business stipulated by the head office of the Agricultural Development Bank, the enterprises that apply for cotton purchase loan must have the following basic conditions at the same time:

1. hold the business license issued by the administrative department for Industry and commerce.

2. hold the loan card issued by the people's Bank of China for effective annual inspection procedures.

3., in principle, the basic account should be opened in the agricultural development bank.

4. in the national cotton quality inspection system reform plan, and has completed the processing equipment renewal and pformation, the authorized department has identified cotton processing qualification.

At the same time, the production and operation of the enterprise is normal, and it can cooperate with the supervision of the agricultural development bank. It has a certain risk prevention ability: the enterprise's paid capital is not less than 15 million yuan RMB; in the past two years, it has achieved continuous profits; the credit rating approved by the agricultural development bank is AA- level (inclusive).

Four, mortgage and guarantee guarantee can cover loan principal and interest.

Q: what are the buyout businesses supported by the Agricultural Development Bank this year?

Zhou Guijuan: after reporting by enterprises in various regions, the Agricultural Development Bank has identified 11 cotton purchasing enterprises with loan qualification, mainly in Haian, Rudong, Tongzhou, Qidong, Yancheng, Funing, Dafeng, Yangzhou Gaoyou, Jiangdu and Jiangdu in Nantong, and the other 9 cities because of the small cotton production, no enterprises in the jurisdiction put forward capital requirements to the agricultural development bank.

In order to ensure the timely supply of cotton purchase funds, the Agricultural Development Bank has approved the loan quota of the opening enterprises in advance, and arranged enough credit funds to meet the needs of the loan funds of the loan enterprises and ensure the continuous supply of funds.

At the same time, we urge these loan enterprises to pay cotton farmers' cotton sales in full and in time, and ensure that cotton farmers can get cash in hand, and welcome cotton farmers to sell cotton to these enterprises.