Cotton To Ice Breaking Cotton Textile Industry Is Still Winter

In 2014, for Cotton textile industry This is a year of change. The implementation of Xinjiang's cotton target price reform pilot policy, the mainland's Cotton Subsidy quota is clear, and the domestic cotton sales mode has been changed and implemented. cotton A series of policy reforms, such as the "warehousing and public inspection" system and the "high levy and low deduction" problem in the industry, made the cotton textile industry become the most concerned part of the whole industrial chain in 2014.

There were rumors in the market in 2013 that in 2014, the state would no longer carry out the temporary cotton purchase and storage policy instead of the cotton direct subsidy policy in the industry. In early 2014, the industry generally believed that the direct subsidy policy had become a fact that was finalized.

Domestic cotton temporary purchase and storage policy has been implemented for 3 years. During the implementation period, domestic cotton prices and foreign cotton have formed five thousand or six thousand or so of internal and external cotton price difference, coupled with insufficient domestic and foreign market demand, and the increase in labor and production costs of domestic enterprises, the competitiveness of domestic cotton textile enterprises has dropped significantly, and the pressure of survival is enormous. The cotton direct subsidy policy, which will soon be introduced, represents the most sincere voice of the cotton textile industry. Enterprises believe that only cotton direct subsidy policy can solve the cotton problem of domestic cotton textile enterprises.

In the industry is looking forward to the cotton straighten rules as soon as possible, cotton textile industry another problem - "high levy low button" usher in "ice breaking", Anhui province lint, Cotton yarn It has become the first province in the country to break the policy of "high taxes and low deductions" in the pilot area of value-added tax deduction of agricultural products. After the news came out, Hebei, Henan, Zhejiang, Hunan, Shandong, Shaanxi, Jiangxi and Jiangsu also started the reform of "high levy and low deduction". In a year, the reform took almost all the key provinces of cotton textile in China with a spark of fire, and brought a warm feeling to the cotton textile industry in the "severe winter", which provided a relatively relaxed development environment for the difficult cotton textile enterprises.

At the same time that the good news of "high and low deduction" has been coming out continuously, the implementation plan of Xinjiang cotton target price reform pilot project has finally been published in the eagerly anticipation of the industry, launched Xinjiang cotton target price subsidy pilot, according to the target price differential subsidy, China's Cotton Subsidy policy has been changed from "covert subsidy" to "direct subsidy cotton farmers", marking the beginning of the marketization reform of China's cotton policy. Subsequently, the Cotton Subsidy Rules of the 9 provinces in the mainland are clear. Since then, the cotton new deal pattern, which is mainly supplemented by "Xinjiang and inland cotton farmers", has been formally formed as a supplement to the cotton processing qualification recognition system and the warehousing and public inspection system.

After the news of the implementation of cotton direct subsidy policy came out, people in the industry predicted that domestic cotton prices would drop sharply. Foreign cotton prices also began to fall due to insufficient demand in China, and domestic and foreign cotton prices were in line with the price differentials. It is gratifying to note that since the implementation of the new cotton subsidy policy, the market price formation mechanism based on market supply and demand in China's cotton field has shown its effectiveness. Whether cotton farmers sell seed cotton, processing plants purchase seed cotton, or textile enterprises purchase lint, the more or only consideration is the market demand. In the process of forming the price mechanism, whether it is cotton enterprises, spinning enterprises or cotton farmers, all need to undergo a painful process. This is a stage that must be experienced in China's cotton policy reform. It is also a baptism that cotton textile enterprises must accept in the market reform of cotton.

By the end of 2014, the cotton market had gradually entered the stage of stabilization, and the textile enterprises still failed to get out of the shadow of the fall in cotton prices. However, with the continuous emergence of the policy effect and the continuous adjustment and improvement of the cotton policy, I believe that in the coming 2015, the cotton textile industry will usher in a more favorable development environment.