Textile Enterprises Complain, Difficult Pformation In The Doldrums

Cotton prices fell, not only cotton farmers, but also the whole industry chain of cotton industry.

Since 2011, in order to protect the interests of cotton farmers, the state has implemented a temporary cotton purchase and storage policy to ensure the price and sale of cotton.

But in recent years,

With the continuous decline of cotton prices, the downturn of domestic textile industry, the lack of market demand, the number of State purchasing and storage, and the sharp increase in inventories, this year, the state cancelled the temporary purchasing and storage policy and implemented the target price policy.

Cotton growers are reluctant to sell, they are not selling cotton, and buying companies do not buy and wait for the cotton market. This year's new cotton purchase seems to have entered a stalemate of acquisitions, and the current situation is

The stalemate is directly reflected in the "hang upside down" of cotton prices.

The fluctuation of textile raw material prices is a test of the cost risk control ability of enterprises. This is already an old problem in the textile industry. It has not been well solved over the years.

The decline of cotton prices this year is supposed to be a good thing for textile enterprises, because the reduction of raw materials means the direct reduction of procurement costs and the increase of profits. But is this the case?

"This year is the most difficult year for the textile industry," said Deng Jun (a pseudonym), the head of a small garment processing factory in Hunan. "This year is the most difficult year for the textile industry. Most textile and garment enterprises are experiencing unprecedented survival crisis and development pressure because of the sluggish market, difficult export, rising costs, and the difference in cotton prices between inside and outside."

"You see how many companies are in normal operation now, and when they are in financial crisis, they do not feel so difficult. Now they just lose money when they start."

Deng Jun said.

Deng Jun told this reporter, "especially private small and medium textile and garment production enterprises, only to purchase raw cotton is a major expenditure, coupled with rising labor costs year by year, and then encountered labor shortage, which is difficult for traditional labor intensive industries in the textile industry."

Deng Jun calculates to reporters: cotton prices at home and abroad are seriously upside down, the current price difference reaches 2500 yuan to 3000 yuan per ton, and high value-added tax is deducted, resulting in heavier tax burden on enterprises and rising labor costs.

"These are all causes.

The main reason for survival difficulties.

Cotton prices are low this year, but we can't buy raw cotton, so we can't buy cotton farmers' houses next to each other.

The industry believes that this year's cotton textile industry situation is still difficult to make a big improvement. At present, some enterprises are going bankrupt and bankrupt. This year cotton textile industry is integrated, eliminated or trend.

Enterprise cost risk control ability.