Problems And Suggestions Of Cotton Industry In China

(1) the Cotton Subsidy Policy in the mainland is coming to the ground, and domestic cotton prices will be further lowered.

In November, the Ministry of Finance jointly held a joint meeting with relevant departments. After the meeting, it was decided that the subsidy standard for cotton in the mainland in 2014 would be 2000 yuan per ton, with subsidies to 9 provinces such as Shandong and Hubei.

At this point, following the launch of Xinjiang's cotton target price reform pilot, China's Cotton Subsidy Policy will soon fall to the ground in 2014.

At present, the picking of Xinjiang cotton has basically ended, and the sales progress has reached about 90%.

As of the end of October, the total turnover of commodity cotton turnover was 922 thousand tons, an increase of 815 thousand tons, an increase of 524 thousand tons compared with the same period last year.

Affected by the growth of supply, the price of cotton market has been significantly reduced.

Entering the December, the processing and outgoing volume of Xinjiang cotton will increase substantially. If the provincial subsidy rules are formulated and published in time, it will also help speed up the process of cotton sale and processing in the mainland, thereby driving domestic cotton prices to further reduce and accelerate the pace of China's cotton prices and international market convergence.

(two) cotton planting area and cotton price both fall, which is not conducive to stable development of industry.

Due to oversupply of global cotton market in recent years, the gap between domestic and foreign cotton prices is significant, and the cotton planting area in the mainland has been declining sharply.

In the past 30 years, the total cotton planting area in China has been declining. The total area of the cotton planting area in the Yangtze River and the Yellow River cotton area is 5 million 630 thousand hectares in 1983. The cotton area in the Yangtze River and the Yellow River cotton area in 2014 will be reduced to 2 million 30 thousand hectares, and the situation of cotton reduction in the mainland will probably continue for 5 years, eventually or down to 1 million 500 thousand hectares.

In addition, since February 2011 cotton

Since the top 34870 yuan / ton, the super bear market has been running for nearly 4 years, and the Chinese cotton price index, which represents spot prices, is down and down again.

In November 25th, China's cotton price index closed at 14563 yuan / ton, the lowest in five years.

The cotton planting area in the mainland has been greatly reduced, and cotton prices have fallen or fallen, which is not conducive to the stable supply of China's cotton market.

(three)

The cotton import quota system needs to be improved.

Influenced by the import quota of cotton and the declining quality of imported cotton, many enterprises choose to import cotton into imported cotton yarn.

The substitution of cotton yarn has increased the pressure on domestic cotton stocks on the one hand. China's state cotton reserves already have the world's largest cotton reserves. By the end of August, the state reserve cotton inventory was about 11 million 500 thousand tons, which is equivalent to two years' cotton consumption in China. Its inventory of cotton is long and its quality is greatly reduced, so it is difficult to meet the needs of domestic textile mills.

There is an outward migration.

In addition, for small businesses that do not easily get cotton import quotas, they can only get quotas by purchasing quotas, with an additional payment of 3000-4000 yuan per ton quota, which has led to an increase in the cost of enterprises.

As the import quota was established, China's textile production capacity was only about 30000000 spindles, while the existing 130 million spindles, resulting in quotas far smaller than demand. Textile enterprises could not freely use the international market to stabilize costs, and the Khmer price difference weakened the competitiveness of China's cotton textile industry.