Low Cotton Prices In Mainland China Urgently Increase Subsidies

In the early November, cotton farmers in the mainland looked forward to the long term.

The subsidy policy has finally surfaced. The price subsidies for cotton in Shandong, Hubei, Hunan, Hebei, Jiangsu, Anhui, Henan, Jiangxi and Gansu provinces have been clearly defined. The subsidy standard for this year is 2000 yuan / ton. The subsidy standard for the following years is based on 60% of the allowance for Xinjiang, and the upper limit is not more than 2000 yuan / ton. 9

The subsidy method is decided by the provinces independently, and it can be subsidized by area or by output.

However, in the past month, Cotton Subsidy Policy in the mainland has not made substantial progress, and cotton farmers are still confused about the relevant rules for subsidies.

The target price reform of cotton in China is aimed at giving full play to the decisive role of the market in the allocation of resources under the premise of protecting the interests of farmers.

In this year's new and old policies, China's cotton industry is undergoing a difficult and painful pformation.

It is understood that although the price subsidy policy of the cotton producing areas in the mainland is clear, but because the specific implementation rules have not yet been landed, the cotton growers are reluctant to sell, the processing enterprises are unwilling to purchase, and even because of the low yield of cotton, some cotton farmers have to pull cotton to plant other crops.

Cotton farmers are impatient with details.

Compared with the cotton subsidy policy introduced by Xinjiang earlier, the Cotton Subsidy Policy in the mainland can be described as "late publication and rough content". The introduction of the whole policy is only a few words. What is the cotton price in the end? What is the supply of the cotton?

At present, it should enter the cotton picking end stage, but in Hubei and Hunan.

Many of them are still white flowers, and many of the cotton that has been completely bolting is still not picked.

It is understood that the cotton mill is generally worried that the cotton prices will continue to fall in the late period, and the purchase intention is not strong, and the seed cotton purchase price is far lower than the cotton farmers' expectations, causing cotton farmers to sell. Many cotton farmers in Hubei and Hunan have backlog.

The head of Hubei Baiyin cotton industry group said that at present, more than 20 types of 400 cotton ginning plants in the northern Hunan cotton growing area have stopped buying seed cotton, while Hubei farmers sell seed cotton better than Hunan Province, but there are still a lot of seed cotton in the cotton producing areas.

He analyzed that many cotton growers and ginning plants in Hubei, Hunan and other provinces are waiting for the introduction of the subsidy rules. It is expected that cotton farmers will sell cotton seeds in large quantities after the introduction of the subsidy rules.

The Cotton Subsidy in the mainland is based on the cotton output determined by the National Bureau of statistics. The mode of subsidy is determined by the provinces independently, and it can be selected by area or by production.

However, due to the late release of the mainland subsidy policy, seed cotton picking was basically completed, and some cotton seeds sold in the early stage were basically without bills. Now it is very difficult to verify the area and output of cotton farmers, thus leading to the difficulty of the provincial and municipal subsidy rules.

According to the relevant departments of Shandong Province, because the State Council has not yet issued a formal approval for the Cotton Subsidy and the National Bureau of statistics has not provided relevant data, the Cotton Subsidy mode in Shandong province has not been determined yet, and the management and distribution of the subsidy funds are still in the preparatory stage.

According to the relevant personage in Shandong Province, the subsidy method can be considered according to the area or output, considering that the farmers are unable to get effective receipts and so on. It is better to subsidize the operation according to the area.

In addition, the issuance of subsidy funds can be used for reference from the original cotton seed subsidy.

Yield reduction and income reduction

Cotton farmers in Henan are even more concerned about the implementation of the rules. Most cotton farmers are worried about the eventual availability of subsidies.

At the same time, for the upper limit of 2000 yuan / ton, cotton farmers also think that the subsidy is low, and can not solve the thirst of low cotton farmers' income under special years.

But the industry believes that the subsidy ceiling of 2000 yuan / ton is not low.

Over the years, the state subsidized cotton production has been only 15 yuan / mu of good seed subsidies, and now raise so much, why cotton farmers are not satisfied?

It is understood that in the first two years, there were countries

The bottom line, plus the good harvest of the year, is a great achievement for most farmers.

However, this year, the state announced the abolition of the temporary cotton purchase and storage policy. After the implementation of the support policy in Xinjiang, the morale of the cotton industry in the mainland was greatly reduced and the market was in a doldrums, resulting in a slump in production and marketing.

According to the survey, this year, the farmers in the coastal area of the Yangtze River Valley can only harvest half of the normal annual yield per mu. According to the quotations of 6.2 yuan to 6.6 yuan per kilogram, the output of seed cotton is 125 kilograms per kilogram, and the income of farmers is only 800 yuan. The total allowance given by the state to farmers is 2000 yuan / ton. The farmers can get 200 yuan, plus 800 yuan of cotton sales income, which is 1000 yuan per mu.

This amount is about half of the local farmers' cotton planting income last year.

Therefore, in the face of such a huge subsidy to farmers, cotton farmers are still unhappy.

Related people pointed out that the new deal will reduce domestic and foreign cotton prices and benefit domestic textile enterprises.

But policy adjustment will also cause cotton prices to fall, and the negative impact of falling prices will also be great.

So the difficulties faced by the cotton industry are hard to solve in the short term.

Subsidised area

The continuous decline in earnings brought about a sharp decline in the cotton planting area in the mainland.

According to the insiders, in the past two years, the cotton planting area in the mainland has been reduced at a rate of about 10%, while the cotton planting area in Xinjiang has been basically stable.

The cotton planting area will continue to expand in the next year, and the cotton planting area in Xinjiang will remain stable.

Shandong Dezhou Cotton Association Ma Junkai introduced this year, Shandong Dezhou area cotton planting area is 680 thousand mu, down 40% compared with last year.

Not only in Shandong, but also in other cotton producing areas.

Jiangsu Dafeng City in 2014, the city's report cotton planting area is about 300000 acres, the most cotton production area of nearly 700 thousand mu, more than half of the list is still the first in the province, visible Jiangsu cotton downward.

In fact, in the past 30 years, the cotton planting area in the mainland has been on the decline.

In 1983, the total area of planting area in the Yangtze River and the Yellow River cotton area reached 5 million 630 thousand hectares, and decreased to 2 million 680 thousand hectares in 1999.

However, the last 10 years have seen a sharp decline. It is estimated that there will be only 2 million 30 thousand hectares of cotton in the Yangtze River and the Yellow River cotton growing areas in 2014.

Even people in the industry predict that unless there is a major accident, the cotton area in the mainland will be reduced for 5 years, and the cotton planting area will eventually drop below 1 million 500 thousand hectares.

The International Cotton Advisory Committee (ICAC) predicts that global cotton production in 2014 is expected to be 26 million 300 thousand tons, which is basically the same as last year.

China's cotton production is expected to be 6 million 500 thousand tons, down 7% from the same period last year. The main reason for the reduction is the shrinking of planting area.

2014/2015 is expected to have an oversupply of global cotton market for third consecutive years.

Insiders said that Cotton Subsidy in the mainland could alleviate the trend of cotton planting area to a certain extent, but it could not change this reality.