Cotton To Ice Breaking Still Can Not Melt The "Hard Ice" Of Cotton Textile Industry.

In 2014, it was a year of change for the cotton textile industry. The implementation of Xinjiang's cotton target price reform pilot policy, the explicit Cotton Subsidy quota in the mainland, the change of domestic cotton sales mode, the implementation of the cotton entry public inspection system and the "high levy and low deduction" problem in the industry were solved. A series of policy reforms 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 difficult problem - "high and low deduction" usher in "ice breaking", Anhui province cotton and cotton yarn into the agricultural products value-added tax approved deduction pilot range, become the country's first break the "high and low deduction" policy of the province.

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.

In "

"The good news of the reform continues to spread. At the same time, the implementation plan of the pilot project of cotton target price reform in Xinjiang has finally been published in the eagerness of the industry, launching the pilot project of cotton target price subsidy in Xinjiang, and subsidized the price difference according to the target price.

The cotton grower marks 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.

In the near future

After the news of 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.