Target Price Reform Will Promote Healthy Development Of Cotton Industry

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Xiaobian of the network introduced to you that the target price reform will promote the healthy development of the cotton industry.

Since 2004, the cotton price adjustment system, which has been established in China with the temporary storage policy, the agricultural subsidy system, the import and export regulation and so on, has reached the purpose of increasing the efficiency of the farmers and increasing the income of the farmers. To a certain extent, it has played an active role in the sustained and healthy development of the cotton industry in the important cotton producing areas of China. At the same time, some potential problems in these policies have become increasingly prominent.

At this time, the new policy of cotton industry target price subsidy policy arises at the historic moment.

Cotton target price reform steadily push forward

It is understood that the target price reform policy implemented by the state in Xinjiang stipulates that when the average price of cotton is lower than the target price of 19800 yuan / ton in the period of price (from September to October), the state will directly subsidize the spread of the two party to cotton producers, while the average price is higher than the target price.

It is reported that the cotton price target reform in Xinjiang lies in protecting the interests of cotton producers, and stabilizing the production of Xinjiang growers.

The state will no longer carry out purchasing and storage at fixed prices, and the role of the market mechanism in price will undoubtedly increase.

Zhang Yanlin, deputy director of the supply and Marketing Association of Xinjiang production and Construction Corps, said at the 2014 Zhengzhou agricultural products (cotton) futures forum that when the market price is lower, the planting income of growers can be subsidized by target price, which effectively protects the farmers' planting of cotton, and has practical significance for the protection of high-quality cotton and the continuous and healthy development of Xinjiang's cotton industry.

In Zhang Yanlin's view, the target price reform will not only help improve the ability of the Construction Corps to deal with the market, push the corps to reform the existing cotton management system, speed up the adjustment of the cotton industrial structure, but also enhance the quality of the corps cotton.

He explained that although in recent years, the state has promoted the development of the cotton industry and guaranteed the interests of farmers through the purchase and storage, but the overall quality of cotton has declined.

The marketization of cotton prices will also improve the phenomenon.

Futures Daily reporter learned that, in the implementation of the cotton target price subsidy policy implementation rules, the Corps put forward "six unification, one guarantee".

Namely, unified management method, unified settlement platform, unified brand, unified sales, unified pricing and unified participation in hedging.

"One guarantee" is the guarantee of quality and quality is the key to the continuous development of corps cotton.

Bid farewell to high priced cotton, textile enterprises will enhance competitiveness

Wang Wanxiang, general manager of China cotton group limited, said that the purpose of the policy is to ensure the profits of cotton farmers first, while paying attention to the market to form prices, reasonably guiding production, circulation and consumption, and promoting the competitiveness of textile enterprises. In general, the whole industry is expected to be coordinated, healthy and sustainable development.

Since the implementation of the trial, the financial environment of the whole market has undergone significant changes and has significant impact on every aspect of the industrial chain.

From the cotton planting situation, first of all, it is to ensure the income of cotton farmers, but also to help cotton production grow and optimize layout.

Wang Wanxiang believes that the development of cotton industry in Xinjiang is in the process of intensive and large-scale production and pformation. In many places, the use of machine instead of labor has reduced the cost and promoted the production of cotton.

The target price policy not only guarantees the interests of cotton farmers, but also lets cotton spinning enterprises bid farewell to the era of high price cotton.

"Although this year is the first year of cotton target price implementation, only in Xinjiang, the whole industry has changed, and the days when cotton processing enterprises used to rely on policy to eat are gone forever.

The difference between domestic and foreign cotton prices has been shrinking, and cotton prices have begun to be truly regulated by the market. Textile enterprises will bid farewell to the era of high priced cotton, and Chinese textiles will also be more competitive in the international market.

A director of a cotton spinning enterprise in Central China told the futures Daily reporter.

In Wang Wanxiang's view, the test of target price policy also helps to straighten out the price relationship between cotton and spinning, so that the competitiveness of textile mills can be restored and improved.

"This phenomenon is more obvious after the new cotton began to be listed. The price of new cotton has dropped down after listing, although the price of cotton yarn is also declining, but the rate is far less than that of cotton, and the profit margins of textile enterprises have increased significantly."

The cotton spot market will combine more closely.

In the conversation with the participants, the reporter learned that the current domestic and foreign cotton price difference is gradually narrowing, from the previous 6000 - 7000 yuan / ton to the current 2000 - 3000 yuan / ton.

"After the target price subsidy policy is implemented, it is a long-term trend that the domestic and foreign cotton prices will shrink."

Ren Xingzhou, director of the Institute of market economy of the State Council Development Research Center, said.

The reporter learned from the customs import cotton yarn data, from April this year, the number of imports of cotton yarn slipped significantly.

"The use of domestic cotton yarn has been greatly improved than before, which is of great significance in promoting the healthy development of the cotton textile industry."

Wang Wanxiang said.

Participating

Told reporters that in the "cotton storage and storage era", the circulation enterprise is basically a acquisition processing plant, the cotton down acquisition processing finished to cotton.

After the implementation of the target price, the domestic cotton can be fully circulated in the market.

"Market price formation, we should say that our business risk is also increased than before, but this can promote enterprises to change their business philosophy, change the previous concept of relying on national policies to carry out business, to market and international business development.

At the same time, we will pay more attention to the quality of cotton purchasing and processing, pay attention to the combination of risk prevention and control, and focus on domestic and international cotton management. This will also help us to implement the strategy of going out and participate in international competition.

Wang Wanxiang said.

Ren Xingzhou said, spot.

The increase of risk just leaves room for futures. Enterprises can use futures market to find prices, avoid risks, diversify risks and lock in costs, and the spot market of agricultural products will be combined more closely.