Textile Industry: Unswervingly Improve The Price Mechanism Of Agricultural Products

Liu Xiaonan, deputy director of the economic and Trade Department of the national development and Reform Commission, pointed out that the future development of cotton industry should be to promote the modernization process of the cotton industry and reconstruct the advantages of the cotton industry chain.

This is a matter that government departments, industry associations, enterprises, cotton growers and organizations need to think deeply about.

In addition to changes in production and cotton production mode, a series of cotton related links such as circulation, warehousing, quality inspection and so on all need to restructure industrial advantages.

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More attention is paid to cotton as an industrial raw material, but cotton is also an agricultural product like corn and soybeans. The implementation of direct subsidy policy is the reform of the price mechanism of agricultural products including it. Perhaps it is easier to summarize its development trend from an agricultural perspective.

Cheng Guoqiang, Secretary General of the academic committee of the State Council Development Research Center, said: "at present, the price formation mechanism of agricultural products is at a difficult stage of choice.

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Some leaders' attitude towards reform was slowly hesitant or even flinch from the firm optimism of the beginning of 2014.

And my view is that the price formation mechanism for agricultural products, the reform of cotton price formation mechanism must be insisted, there is no retreat.

Why is Cheng Guoqiang so steadfast? Statistics show that in the past 10 years, the total cost of China's cotton industry has increased by 148%, which is the fastest rising among all agricultural products except sugar. Among them, artificial rise has contributed to the largest proportion of the cotton industry, accounting for 74%.

In Cheng Guoqiang's view, under the new normal, China's agricultural products have entered a critical period of mechanism innovation and structural pformation.

How to innovate the way of agricultural management, eliminate the existing small-scale and household management pattern, promote quality and efficiency, reduce costs and reduce consumption has become a key issue.

And for the whole cotton industry, market-oriented reform is the only way out for the whole cotton industry. If we are shaken in the current critical period, especially in the way of policy implementation, the consequences will be unthinkable.

After the determination of the general direction is the formulation of policies, Cheng Guoqiang introduced that at present, the whole world has two ways to support agriculture in terms of agricultural policy experience.

One is to subsidize producers, to ensure the supply of certain agricultural products, the other is to support the whole agriculture, including science and technology promotion, environmental improvement,

And so on, producers do not play a direct role.

No matter which policy logic is chosen, these two frameworks can not be dragged.

Cheng Guoqiang said that at present, China's subsidy to cotton is beyond the price ceiling, especially the cotton purchase and storage policy, and the state has invested a lot of financial support.

If we want to get rid of the plight of high subsidies and insist on the reform of price formation mechanism, it is the only way to persist in marketization.